In November 2023, Zhao Changpeng was charged by the Department of Justice for failing to effectively maintain an Anti-Money Laundering (AML) program and violating the Bank Secrecy Act during his tenure at Binance. As part of a plea agreement, Zhao resigned from his position as CEO, and both the cryptocurrency exchange and Zhao agreed to pay $4.3 billion to settle civil liabilities in the United States. Meanwhile, Judge Richard Jones of the Western District of Washington Federal District Court is expected to hear statements from prosecutors and Zhao’s lawyers at a sentencing hearing on April 30, 2023, to determine Zhao’s punishment.
The United States Sentencing Guidelines recommend a sentence of 12 to 18 months for the charges he faces, but the US government still has the authority to argue for a maximum sentence of up to ten years.
Moe Vela, former Deputy Chief of Staff to Vice President Joe Biden, said that US authorities may try to “send a message” to illegal participants in the cryptocurrency field through this case, regardless of whether the judge imposes a severe punishment on Zhao Changpeng. However, he speculates that due to Zhao’s cooperation and plea agreement, he may receive “lenient treatment” from the judge.
Former Assistant US Attorney for the Eastern District of New York, Mark Bini, stated in an interview that unlike the criminal case against SBF, Zhao Changpeng’s case is more like a “regulatory violation,” so he is unlikely to face overly harsh penalties. However, he added that the events surrounding Hamas’ attacks on Israel may somehow influence the judge overseeing Zhao Changpeng’s sentencing.
Following the Hamas attacks, there have been reports of cryptocurrencies being used to fund terrorist organizations. These allegations may be related to the previous charges against Zhao Changpeng for failing to maintain the AML program as the CEO of Binance. Mark Bini stated:
Since pleading guilty, Zhao Changpeng has been restricted to certain areas in the United States, and his bail is set at $175 million. Despite multiple requests from Zhao’s legal team to allow him to visit his family in the United Arab Emirates before the hearing, they have been denied by the judge.
