While Zhao's attorneys had argued for probation, federal prosecutors had been seeking three years, which is double the recommended sentence.

As part of an agreement struck in November between Binance and the Department of Justice, Treasury Department, and CFTC, Zhao entered a guilty plea. The agreement addressed accusations that the exchange had not kept up an appropriate anti-money laundering program, had been operating an unlicensed money-transmitting business, and had broken sanctions laws.

The biggest cryptocurrency exchange in the world consented to surrender $2.5 billion to the government and pay a $1.8 billion fine.

Zhao, meantime, entered a guilty plea to charges of breaking the Bank Secrecy Act and inciting a financial institution to do the same. He consented to forfeit $50 million, resign as CEO, and be prohibited from managing Binance in any capacity. Binance was founded by him in 2017.

"Proud of the culture of compliance, security, and transparency we have created over the past several years, and we look forward to building on that culture as we continue to evolve," Binance said in a statement to the media.