U.S. Judge Spares Former FTX CTO Gary Wang From Prison After Cooperation

Gary Wang, the former chief technology officer of FTX, has been spared prison time for his involvement in the cryptocurrency exchange’s fraud scandal. The United States Judge Lewis Kaplan announced the decision on Wednesday, citing Wang’s significant cooperation with prosecutors in securing Sam Bankman-Fried’s conviction.

SAM BANKMAN-FRIED’S FORMER DEPUTY GARY WANG SPARED PRISON TIME BY U.S. JUDGE OVER HIS ROLE IN FTX CRYPTO FRAUD – RTRS

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Judge Kaplan praised Wang for helping the investigation, saying his cooperation deserved recognition. He admitted that Wang had some responsibility for the crimes but noted his role was smaller compared to others. The judge also stressed that helping the authorities should be rewarded, calling it a fair balance.

Wang Pleads Guilty

Wang had pleaded guilty to four criminal charges in December 2022, including wire fraud, securities fraud, commodities fraud, and conspiracy to commit wire fraud. Despite his admissions, his collaboration with authorities played a critical role in Bankman-Fried’s trial, where he served as one of two primary witnesses alongside Caroline Ellison, the former CEO of Alameda Research.

Ellison, also a cooperating witness and Bankman-Fried’s former girlfriend, received a two-year sentence in September. Other FTX executives, including former engineering director Nishad Singh, also avoided jail. However, Ryan Salame, another key figure, was sentenced to seven and a half years for campaign finance violations.

As for Wang, he expressed deep remorse for his role in the fraud, acknowledging missed opportunities to act differently. The prosecutors noted that Wang’s cooperation was crucial not only in securing Bankman-Fried’s conviction but also in helping with future investigations.

Wang’s Ongoing Contributions

In a court filing on November 13, prosecutors revealed that Wang developed an interface now used by authorities to identify potential fraud in publicly traded companies. He has also agreed to continue working on a tool to detect illegal activities in cryptocurrency markets.

Wang’s sentencing marks the conclusion of the legal proceedings for FTX executives following one of the most high-profile fraud cases in the crypto industry.