On April 30, Judge Richard Jones sentenced Zhao to four months in prison, going against the recommendation of the U.S. Department of Justice (DOJ) to sentence Zhao to three years in prison.
London-based financial services lawyer Rabya Anwar told crypto.news that the stories of Zhao and FTX founder Sam Bankman-Fried were “interconnected” after the U.S. government took action against both within a short period of time. She explained:
“Zhao may have mentored Bankman-Fried before the breakdown of their relationship in the past, but the way these two industry leaders conduct their respective businesses is completely different. Bankman-Fried is accused of fraud, including misappropriating customer funds, which some have described as theft. Zhao’s case, on the other hand, focuses more on the effectiveness of anti-money laundering controls.”
Attorney Rabya Anwar, an award-winning financial services lawyer, told crypto.news.
Several factors contributed to the difference in sentences between the two men. Anwar points to “the nature of the behavior and, by extension, the harm and lasting impact the FTX scandal has had on the innocent public.”
Additionally, many in X’s cryptocurrency community have been sharing the number “4” since Zhao’s sentencing was announced. Zhao is a signal and viral meme developed to raise awareness about the four key players behind Binance in 2023.
Autism Capital says Zhao “literally brought his prison sentence into existence.”
Zhao immediately after sentencing Posted He said he would “focus on the next chapter” of his life after his time in prison, with the goal of “education.”
Cryptocurrency influencer Crypto Patel also expressed support, saying, “Zhao is not a criminal.” He added that Zhao is an “innovator” and “believes in a future powered by cryptocurrency.”
Another X user named RobinTheFarmer pointed out Zhao’s support for Terra (LUNA) and Luna Classic (LUNC) and their communities.