Gary Wang, FTX Co-Founder, Receives Time-Served Sentence

FTX co-founder Gary Wang has avoided jail thanks to his cooperation with US authorities, who praised him as instrumental in their fight against crypto fraud.

Gary Wang, along with other senior FTX executives like Sam Bankman-Fried and Caroline Ellison, was found guilty of defrauding FTX customers in the events that led to the company’s collapse in 2022.

Wang freed for his Cooperation

Wang, who served as FTX’s CTO, was charged with conspiracy to commit fraud, conspiracy to commit securities fraud, and conspiracy to commit commodity fraud. However, his decision to cooperate with prosecutors led to a leniency plea being submitted to Judge Kaplan, who presided over the case.

No prison for Gary Wang, former FTX CTO.
The government has hinted that FTX CTO Gary Wang should be spared from prison. Compared to Caroline Ellison and Nishad Singh, they noted:

Wang’s cooperation came earlier (1st to cooperate);
Wang’s involvement in the FTX fraud was more… pic.twitter.com/r1fZzoBREu

— FTX Historian (@historian_ftx) November 13, 2024

Prosecutors praised Wang’s “extraordinary computer programming skills.” They claimed Wang helped build tools to detect “potential fraud in the stock and cryptocurrency markets.”

On November 20, Judge Kaplan granted the leniency plea. And sentenced Wang to time served, along with asset forfeiture. Explaining reasons behind the reduced sentence, Judge Kaplan said Wang was “entitled to a world of credit” due to “the extent of your cooperation.”

Following the sentencing, a remorseful Gary Wang addressed the court. He said,  “I took the easy path, the cowardly path, instead of doing the right thing. I will spend the rest of my life trying to make amends.”

Sentencing for other FTX executives

Judge Kaplan also handled the sentencing of other FTX executives implicated in the scandal. Elison received a 2-year sentence for her role in the scheme. Also, former FTX Digital Markets co-CEO Ryan Salame got a 7.5-year sentence. Bankman-Fried, the most high-profile figure in the case, received a 25-year sentence, while former FTX engineering director Nishad Singh received a similar sentence to Wang.

My conclusion to Judge Kaplan

FTX wants to pay back 25% of crypto while taking $ billions in fees, paying government fines

FTX customers did not lie to CFTC

We are the victims of SBF, FTX estate, Sullivan and Cromwell lies to CFTC

We should not be paying for their crimes
We… pic.twitter.com/ZzW1eUUqF7

— Sunil (FTX Creditor Champion) (@sunil_trades) March 21, 2024

Although Wang’s sentencing draws the curtain on the prosecution of FTX executives, Bankman-Fried’s attorneys continue to fight. Bankman-Fried’s lawyers are reportedly seeking to free their client via an appeal process. His legal team has filed for a retrial, claiming a wrongful conviction.

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