According to the letter, CZ acknowledged that while Binance experienced rapid and sometimes "chaotic" growth, he remained dedicated to "improving Binance, making it a secure platform, providing financial access for hundreds of millions of users all around the world." He dislikes leaving issues "unresolved," which is why he "voluntarily surrendered and took responsibility in this case." Zhao also mentioned previous business ventures that were unsuccessful; however, he ensured that investors were reimbursed fully when these businesses failed.
In November last year, Zhao stepped down from his role as Binance CEO when the company reached an agreement with the U.S. government over historical compliance issues. This information was shared in a press release from the U.S. Department of Justice. As part of this agreement, Binance consented to pay $4.3 billion in penalties and permit a third-party monitor access to its transactions and accounts. Additionally, Zhao agreed to plead guilty to failing to maintain an effective anti-money laundering (AML) program as part of the settlement.
A court filing revealed that Zhao received 161 letters of support from various sources including family members, friends, business and community leaders, colleagues, employees, industry professionals, and Binance users. In one such letter penned by Yi He—Binance's other co-founder—she recalled meeting Zhao in 2014 when he was brimming with idealism about the positive impact blockchain technology could have globally. She said that after launching Binance, Zhao was not primarily focused on monetary gains; instead, he aspired to use technology to advance the world. He highlighted Zhao's commitment to philanthropy and social responsibility, which she believes is rooted in his "humanitarian spirit." She mentioned that unlike industry norms, Zhao assisted a young user in recovering funds accidentally sent to the wrong wallet address when Binance was first launched. "Under the guidance of CZ, Binance has helped more than 180,000 users recover assets totaling more than US$441 million," He stated. "In this emerging Wild West, countless practitioners have played more the role of predators, while CZ has always insisted that we do the right thing: Protect users."
According to another court filing, the recommended prison sentence for Zhao is between 12 and 18 months. However, the U.S. Department of Justice has requested the court to impose a 36-month sentence.
Investopedia reports that Zhao was born in China but moved to Canada at a young age after his father was exiled due to his intellectual views. He studied computer science at McGill University and held various roles in the financial sector before launching Binance in 2017. The exchange now boasts a daily trading volume of $76 billion and serves 90 million users worldwide.
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