FTX Co-Founder Gary Wang Sentenced to Time Served and Supervised Release
Former FTX executive Gary Wang received a sentence of time served along with three years of supervised release for his involvement in the $8 billion fraud linked to the exchange's collapse. Wang is the last cooperating member of Sam Bankman-Fried’s inner circle to be sentenced.
As co-founder and former chief technology officer of FTX, Wang testified as a government witness in Bankman-Fried’s criminal trial last fall. He was the first co-conspirator to cooperate with prosecutors, pleading guilty to four counts of fraud and conspiracy in December 2022.
Judge Lewis Kaplan acknowledged Wang's cooperation, noting that while he bears some responsibility, it is minimal compared to others involved. Wang's family attended the sentencing.
Prosecutors highlighted Wang's contributions were crucial for their case against Bankman-Fried and may aid in future prosecutions. They noted that Wang developed an interface now used by the government to detect potential fraud in publicly traded companies and agreed to work on tools for identifying illegal activities in cryptocurrency markets.
During the trial, Wang revealed that he wrote code allowing Alameda Research unlimited withdrawals from FTX, resulting in an $8 billion deficit. He admitted to granting special privileges to Alameda and misleading the public about these actions.
Wang's attorneys argued he was unaware of Alameda's misuse of funds and emphasized his remorse and assistance to the government in addressing the situation.
Wang is the third and final government witness sentenced; Caroline Ellison received a two-year prison sentence, and Nishad Singh was sentenced to time served with three years of supervised release.