Federal prosecutors had threatened to bring charges over a flood of criminal activity taking place on Binance, the giant cryptocurrency exchange that Mr. Zhao founded. During legal negotiations in 2023, they accused him of money laundering and terrorist financing, and demanded that Binance pay $6.8 billion, one of the largest corporate penalties ever.
Mr. Zhao, crypto’s wealthiest billionaire, consulted more than a dozen high-priced lawyers, who often gave conflicting advice, according to a draft of his unpublished memoir, “Freedom of Money,” which was obtained by The New York Times. He thought the Justice Department’s demands were unreasonable and mentally prepared for life as a fugitive, unable to travel without risking arrest.
“The D.O.J. prioritized victory over justice,” Mr. Zhao wrote. At times, he added, he worried that prosecutors would “pull tricks” and “screw with me.”
In the end, Mr. Zhao, 49, cut a deal and pleaded guilty to a single count of violating an anti-money-laundering statute. In 2024, he was sentenced to four months in prison; President Trump pardoned him last fall.