Steven Lee Speaks With Law360 On Binance Founder’s Prison Sentence

Atlanta/Savannah, Ga. (May 7, 2024) - Atlanta/Savannah Partner Steven Lee recently spoke with Law360 for an article titled, “Binance Founder's Sentence Shaped By Plea And Apology.” The article addresses how Binance founder and former CEO Changpeng Zhao’s cooperation with law enforcement and willingness to accept responsibility resulted in a “relatively short” prison sentence.

As the article explains, Mr. Zhao recently received a sentence of four months in jail for failure to maintain an effective anti-money laundering program. This sentence was one month less than the U.S. Probation and Pretrial Services' five-month recommendation and far below the government's request for a three-year sentence. The article points out that throughout the yearslong investigation of Binance, Mr. Zhao cooperated with law enforcement and ultimately accepted responsibility, in court, for the company’s anti-money laundering violations.

In discussing Mr. Zhao’s sentence with Law360, Mr. Lee explained that Mr. Zhao's willingness to plead early and consistently accept responsibility caused the court to navigate a "judicial balancing act." He noted, "I do think that the sentence sends a message to those involved in the crypto space that adhering to anti-money laundering laws and regulations are essential. . . .The sentence also shows that the U.S. legal system is going to consider acceptance of responsibility and cooperation with law enforcement." Mr. Lee further explained that if Mr. Zhao had not cooperated, the court might not have decided to sentence him to a term below the advisory range.

Mr. Lee serves as vice chair of Lewis Brisbois’ Government Investigations & White Collar Defense Practice. As a former federal prosecutor, he focuses his practice on government and internal corporate investigations as well as complex litigation matters.

Read the full Law360 article here (subscription may be required).