Gary Wang, the co-founder of the now-defunct crypto exchange FTX, was sentenced on Wednesday to time served, together with three years of supervised release for his involvement in a sweeping $8 billion fraud scheme. This makes him the fifth and final ex-employee of FTX to face punishment within the fallout from the corporate’s collapse.
Sentenced After Cooperation With Authorities
Wang, who pleaded guilty to 4 criminal charges including conspiracy to commit wire fraud and conspiracy to commit securities fraud, faced a possible maximum sentence of fifty years.
Nonetheless, according to CNBC, his cooperation with authorities played a major role within the court’s decision. He was ordered to forfeit $11 billion, aligning with the penalties imposed on his co-defendants.
In court, Wang expressed deep remorse for his actions, holding a single printed page that he didn’t check with in his temporary speech to customers and investors affected by FTX’s demise:
I took the simple path, the cowardly path, as an alternative of doing the fitting thing. I’ll spend the remainder of my life attempting to make amends.
Wang’s defense team, nevertheless, contended that he lacked full visibility into the fraudulent activities of the exchange, claiming that he was unaware of the misuse of customer funds by FTX’s sister hedge fund, Alameda Research, until the scheme was already in motion.
A Recent Chapter After FTX Scandal
Assistant US Attorney Nicolas Roos praised Wang as an “exceptionally cooperative witness,” noting that he provided key insights into FTX’s operations, which facilitated the misappropriation of customer funds. This cooperation included assisting the federal government in understanding the coding that underpinned the exchange’s operations.
Since Wang’s cooperation, he has utilized his programming skills to assist detect potential fraud in each stock and cryptocurrency markets. He’s developing a tool geared toward identifying illegal activities in crypto transactions, a project that can proceed alongside his ongoing cooperation with authorities.
Wang was the primary FTX worker to approach the federal government but was the last to be sentenced, marking the conclusion of criminal proceedings against former executives of the corporate.
This follows the sentencing of other key figures, including Sam Bankman-Fried, who received a 25-year prison sentence, and Caroline Ellison, the previous CEO of Alameda Research, who was sentenced to 2 years for her role within the fraud.
Judge Lewis Kaplan, known for his firm stance in high-profile cases, commended Wang for taking responsibility for his actions, stating, “You’re entitled to a world of credit for facing as much as your responsibility.” He acknowledged that Wang’s level of culpability was comparatively minor when evaluated against that of his co-defendants.
On the time of writing, FTX’s native token FTT is trading at $2.17, up a considerable 30% within the fourteen day time-frame amid the broader market rally led by Bitcoin (BTC).
Featured image from DALL-E, chart from TradingView.com