Changpeng Zhao, commonly known as CZ, the co-founder and former CEO of cryptocurrency exchange Binance, expressed regret over his actions that violated the Bank Secrecy Act. In a letter filed in court on April 23 ahead of his sentencing on April 30, he stated that he would strive to live his life "in a manner that will make everyone proud."
"Words cannot explain how deeply I regret my choices that result in me being before the Court," said Changpeng Zhao (CZ). "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."
According to a press release from the U.S. Department of Justice (DOJ), CZ, a Canadian national, admitted to breaching the Bank Secrecy Act by failing to implement adequate anti-money laundering controls at Binance during its inception in 2017. This confession was part of an agreement with the U.S. government made in November. At that time, CZ also resigned from his position as Binance CEO. The company paid $4.3 billion in fines and consented to an independent compliance monitor's oversight for three years to scrutinize its compliance protocols.
A court filing suggests that CZ's recommended prison sentence ranges from 12 to 18 months. However, the DOJ has requested the court for a longer sentence of 36 months.
Zhao announced his resignation as CEO of Binance in a post dated Nov. 21 on X platform. He said, "Today, I stepped down as CEO of Binance... I know it is the right thing to do. I made mistakes, and I must take responsibility." He also expressed confidence in Richard Teng, the new Binance CEO, stating that Teng "will ensure Binance delivers on our next phase of security, transparency, compliance, and growth."
In response to these developments, Binance issued a statement on its website acknowledging its responsibility for historical criminal compliance violations and expressed readiness to move forward from this challenging yet transformative chapter. The company emphasized that the DOJ did not accuse it of misusing customer funds or engaging in market manipulation. It also stated that Binance has restructured its company over the past two years, promoting leaders with compliance backgrounds to create "a stronger, safer, and even more secure platform for our users."
Investopedia reports that CZ was born in China and moved to Canada at a young age after his father was exiled due to his intellectual views. Prior to launching Binance in 2017, he held various roles in the financial sector. The exchange currently boasts a daily trading volume of $76 billion and serves 90 million users worldwide.