Binance Founder Changpeng Zhao Apologizes Ahead of Sentencing, 161 Others Send Letters of Support

Zhao was set to receive his sentence from the DOJ on April 30, 2024, following the resolution of charges with Binance in November 2023. Initially, Zhao gave up the option to contest any sentence lasting up to 18 months at that time. However, the DOJ has since requested a longer penalty of 36 months.

In a letter to Judge Richard A. Jones of the Western District of Washington, Zhao admitted, “I cannot offer an explanation for my inability to implement required compliance measures at Binance.” He also assured the judge that this would mark his first and only interaction with the criminal justice system.

Moving ahead, Zhao expressed his intention to back biotech new businesses and inspire the younger generation. Accompanying Zhao’s statement was a collection of 161 letters advocating for leniency from various individuals including relatives, friends, and acquaintances.

Jessica Zhao, Zhao’s sister and a former Managing Director at Morgan Stanley, spoke up in defense of her brother, acknowledging that he has made errors in the past. However, she emphasized that her brother’s primary motivation is to help others. Using the FTX situation as an example, Jessica pointed out that Zhao took steps to prevent Binance from misusing customers’ funds.

“CZ’s co-founder and mother at Binance, He Yi, put it this way: ‘CZ is like the sheriff keeping order in the unruly cryptocurrency frontier.'”

“Yi acknowledged that even the United States is still figuring out how to oversee and categorize this particular industry. Being a first-time founder of a company this large, he was certain to face unfamiliar challenges.”

In 2018, Yang Weiqing, Zhao’s wife and mother of their two children, shared an instance of Binance’s generous donation. Despite having exited the Japanese market earlier that year, Binance provided tens of millions of yen in aid to regions devastated by disasters in Japan.

Rachel and Ryan, Zhao’s kids who are studying in American universities, shared personal stories highlighting their father’s supportive nature. They requested the judge to consider these anecdotes instead of basing his judgment solely on that single incident.

On January 1, 2024, Tigran Gambaryan, then Binance’s Head of Financial Crime Compliance and a former U.S. Department of Treasury special agent, penned a letter in support of the case. Sadly, he was later detained in a Nigerian prison due to a conflict between Binance and Nigerian authorities. The letter was composed prior to his arrest.

Although I recognize CZ’s past mistakes, I want to emphasize his trustworthiness, shrewd business acumen, and charitable endeavors. These qualities have left a significant ripple effect, shaping Binance’s corporate culture as well as improving lives around the world.

Supporting letters were additionally provided by Max S. Baucus, a former U.S. Ambassador to China, Jeremy R. Cooperstock, a professor at McGill University, Ronghui Gu, an associate professor at Columbia University, Sean Yang, a managing director at Morgan Stanley, and members of the royal family in the United Arab Emirates.

Nikhilesh De contributed to this story.