Changpeng Zhao, the brains behind Binance—the planet’s biggest crypto exchange—walked into court on April 30 and walked out with a four-month prison sentence.
The Department of Justice pushed hard for three years behind bars, but Zhao’s defense team argued he shouldn’t see a single day. In the end, Judge Richard Jones split the difference, handing down a lighter punishment than prosecutors wanted.
Jones wasn’t convinced by the DOJ’s call for a heftier 36-month term, saying there’s no proof Zhao ever got wind of the specific shady dealings on Binance. “No evidence he was in the loop on that,” the judge remarked, brushing off the prosecution’s plea twice. Still, he gave props to their hefty report and hinted at where he’d land—agreeing with some of their takes but not the big jail time push.
This all stems from last November, when Zhao and Binance copped to breaking U.S. anti-money laundering and sanctions rules. To keep the exchange humming, they cut a blockbuster deal with the feds: Zhao stepped down as CEO, forked over a $50 million fine, and Binance shelled out a massive $4.3 billion. Zhao posted a $175 million bail to stay free until sentencing, but prosecutors weren’t thrilled—back in November, they fought to keep him stateside, arguing he could ditch the cash and live cushy abroad forever.
Four months isn’t the three years the DOJ dreamed of, but it’s a far cry from the no-jail pitch his lawyers threw. For Zhao, it’s the end of a wild ride—at least until he’s out and plotting his next move.
