Former Binance CEO Changpeng Zhao apologizes ahead of sentencing amid 161 letters of support

In a letter to U.S. Judge Richard A. Jones for the Western District of Washington filed on Tuesday, former Binance CEO Changpeng Zhao apologized for his “poor decisions” at the helm of the crypto exchange ahead of his sentencing over anti-money laundering and sanctions violations.

“I apologize for my poor decisions and accept full responsibility for my actions,” Zhao wrote in the letter dated Feb. 2. “In hindsight, I should have focused on implementing compliance changes at Binance from the get-go, and I did not. There is no excuse for my failure to establish the necessary compliance controls at Binance."

Zhao said he wished he could change that, describing how chaotic it was to keep Binance afloat in the early years, but argued Binance now has the most stringent anti-money laundering controls of any non-U.S. exchange.

The former Binance CEO also apologized to his family, friends, employees and the broader crypto community, saying he took comfort from letters of support sent on his behalf. Some 161 letters of support for Zhao were also filed on Tuesday.

The list includes Max Baucus, former U.S. Senator and Ambassador to China; Samson Mow, CEO of Bitcoin technology company JAN3; Dovey Wan, Founding Partner of Primitive Ventures; Val Vavilov, founder of Bitfury; and Yi He, co-founder of Binance.

Going forward, Zhao said he would like to fund small research labs to help cure diseases and educational programs for the youth. Zhao subsequently launched Giggle Academy in March — a “gamified, adaptive” platform that aims to provide free basic education for all.

“Words cannot explain how deeply I regret my choices that result in me being before the Court. Rest assured that it will never happen again. Please accept my assurance that this will be my only encounter with the criminal justice system and that going forward I will live my life in a manner that will make everyone proud,” Zhao concluded.

US DOJ seeks 36 months imprisonment

U.S. prosecutors are seeking 36 months of imprisonment for Zhao, The Block reported earlier today.

“Zhao’s willful violation of U.S. law was no accident or oversight,” the Department of Justice said in the Tuesday filing. “He made a business decision that violating U.S. law was the best way to attract users, build his company, and line his pockets.”

“The United States recommends that the Court impose an above-Guidelines sentence of 36 months of imprisonment,” the DOJ added.

Zhao's defense council responded to the DOJ recommendation soon after, requesting the court to sentence him to probation.

"Mr. Zhao has paid massive fines. He directed the Company to plead guilty before this Court and to resolve related civil charges with three federal agencies," Zhao's defense team wrote. "These factors strongly favor lenience." 

Zhao is scheduled to be sentenced on April 30 after pleading guilty in the U.S. to anti-money laundering and sanctions violations in November, agreeing to a $50 million fine and stepping down as Binance CEO. Binance agreed to pay $4.3 billion in one of the largest corporate settlements in history.