Binance Founder Zhao Writes Apology Letter to Judge as US Prosecutors Seek 3-Year Prison Sentence

Changpeng Zhao, the founder of cryptocurrency exchange Binance, could serve three years in prison after U.S. prosecutors recommended the sentence on Tuesday. Zhao previously pleaded guilty to charges of violating anti-money laundering laws.

The recommendation comes despite Zhao waiving his right to appeal any sentence up to 18 months under federal guidelines. Prosecutors believe a longer sentence is justified, stating that Zhao's actions were willful and a reflection of a "Wild West" business model that benefited criminals. Binance also agreed to pay a substantial $4.32 billion criminal penalty.

Zhao's defense attorneys are seeking probation, arguing that he is a first-time offender who has accepted responsibility and made Binance an industry leader in compliance. They also point to the $50 million criminal fine Zhao paid separately.

The defense for Zhao has submitted a letter of apology from the founder, along with 161 letters of support from family, industry professionals, and former government figures. Key supporters include Zhao's sister, co-founder of Binance He Yi, and former U.S. Ambassador to China Max S. Baucus.

U.S. District Judge Richard Jones is expected to issue the formal sentence on April 30th.