Gary Wang, a co-founder of FTX, receives his release from prison following his significant cooperation in a crypto fraud case. Gary Wang, the former chief technology officer and co-founder of the now-defunct cryptocurrency exchange FTX, received a sentence of time served and probation after crucially assisting U.S. prosecutors in one of the biggest financial fraud cases in history.
Federal investigators commended Wang, who faced a potential 50-year prison sentence, for his cooperative efforts and significant contributions to the investigation, ultimately revealing the extensive fraud that led to FTX’s downfall. In late 2022, Wang and Caroline Ellison, the former CEO of Alameda Research, entered a guilty plea to fraud charges. A key component of the case against Sam Bankman-Fried, the former CEO of FTX, was their participation in a scam that transferred billions of dollars in client money to Alameda Research.
The operation’s mastermind, Bankman-Fried, is currently serving a 25-year sentence for his involvement in the scam. Judge Lewis Kaplan recognized Wang’s pivotal role in exposing the truth during his sentencing on November 20, 2024. He pointed out that following the FTX collapse in November 2022, which sped up the inquiry, Wang was the first to participate. The prosecution commended Wang’s technological expertise, stating that he successfully decrypted a large portion of the fraud’s intricate coding on his first day of work.
His observations were crucial in revealing how FTX misappropriated consumer money to compensate for losses at Alameda Research, a technique that enabled the exchange’s demise and aided in its illegal operations. In court, Wang showed profound regret and acknowledged that he had chosen the “cowardly path” by acting immorally from the start. He expressed regret to FTX’s investors and clients, promising to live out the rest of his days atoning for his transgressions.
Despite his involvement in the scam, prosecutors highlighted Wang’s minimal responsibility and his cooperation, which they said were crucial in revealing the full scope of the misconduct. With Wang’s lenient sentence, the main players in the FTX affair will no longer face criminal charges. Along with Ellison, who received a two-year prison sentence, Wang is one of several executives who collaborated to reveal the dishonest business practices that caused the company to fail. After resolving his legal issues, Wang plans to continue living his life outside the cryptocurrency business. His lawyer pointed out that Wang has since secured a new job and is committed to becoming a responsible person as he gets ready for the birth of his first kid. Bankman-Fried’s legal team is still pursuing an appeal, hoping to overturn his conviction on the grounds of a defective trial, even if Wang’s sentencing closes one chapter of the FTX case.
