USA v. Zhao

The DOJ charged Zhao with willfully aiding and abetting and failing to maintain a proper anti-money laundering (AML) program for a money services business over five years.

The court credited Zhao’s cooperation with law enforcement for his relatively short prison sentence of four months. The court emphasized that this outcome sends a clear message to the cryptocurrency community about the importance of adhering to AML laws. Zhao referenced the Hayes precedent, arguing that no similarly situated defendant had received jail time. See USA v. Hayes. This case was also contrasted with USA v. Bankman-Fried, where the defendant received a much harsher sentence of 25 years for fraud and other charges.

2:23-cr-00179