Gary Wang, a former top FTX executive, was sentenced Wednesday to three years of supervised released and time served for his involvement in the $8 billion fraud which preceded the collapse of the exchange. Wang is now the last member of Sam Bankman Fried’s inner circle that has been sentenced.
Wang, the co-founder of FTX and former chief technologist, was a government testifier in Bankman-Fried’s criminal trial, which took place last autumn. He was the only co-conspirator who worked with prosecutors, and pleaded guilt to four counts in December 2022.
“You immediately did the right thing,” Wang was addressed by Judge Lewis Kaplan on Wednesday. “You are entitled to a world of credit.”
Kaplan said that while Wang is responsible for his part in the crimes, his responsibility is not as great as other defendants. “Life is a balance,” Kaplan stated that cooperation should be recognized.
Wang’s wife and parents, who are expecting their first baby, were in court on Wednesday.
Wang’s attorneys and the prosecution team had previously requested that the judge sentence Wang to time-served.
Wang’s aid, according to prosecutors, not only helped them in their prosecution of Bankman-Fried, but it will also help in the future in bringing down more criminals.
“Wang has built an interface that the Government has begun using for detecting potential fraud by publicly traded companies,” Prosecutors wrote in a November 13th note to the Court.
Prosecutors said that if Wang was able to avoid prison time, he had agreed to continue work on an additional “tool for detection of potential illegal activity in cryptocurrency markets.”
Last fall, Wang said that under Bankman-Fried’s guidance, he had written the code which allowed Alameda to operate. “unlimited withdrawals” FTX. The excessive credit line ultimately resulted in an $8 billion gap in the exchange’s books.
“We gave special privileges to Alameda Research on FTX,” Wang spoke during Bankman-Fried’s trial. “And we lied about this to the public.”
Wang’s lawyers said he did not know Alameda used the tool to steal money from FTX customers.
“As the Government has recognized, Gary first learned of the fraud after it was well underway having been lied to and deceived by Sam Bankman-Fried,” They wrote this in a filing dated Nov. 6. “Gary is profoundly remorseful and has taken extraordinary steps to assist the Government and others working on behalf of FTX victims.”
Wang is now the last government witness sentenced. Caroline Ellison, the former CEO of Alameda Research and Bankman Fried’s on-again, off-again girlfriend and Bankman Fried’s ex-girlfriend, was sentenced in September to two years behind bars. Nishad Singh, a fellow top advisor, was sentenced last month to time served and three years of supervised released.
Updated November 20, 2024, 10:49am ET: Quotes from Judge Lewis Kaplan added.
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