On April 30, Judge Richard Jones sentenced Zhao to four months in prison, contrary to the US Department of Justice's recommendation of a three-year sentence. 🏛️
London-based financial services lawyer Rabya Anwar says the stories of Zhao and FTX founder Sam Bankman-Fried "became intertwined" after the US government took action against both in a short space of time.
"Zhao may have mentored Bankman-Fried in the past, but the way these two industry leaders did business was completely different. Bankman-Fried was accused of fraud, including misappropriation of client funds, which some describe as theft. While Zhao's case is more related to effectiveness of controls on money laundering," says Anwar.
After the verdict, Zhao said he would serve his sentence and "focus on the next chapter" of his life, pointing to "education."