Michaela Alvez
Former FTX chief technology officer Gary Wang has evaded jail time. Despite his involvement in the cryptocurrency fraud orchestrated by former CEO Sam Bankman-Fried, a judge opted for leniency.
According to reports, U.S. District Judge Lewis Kaplan sentenced Wang to three years of supervised release and required him to surrender funds linked to his involvement in the crypto scheme. In December 2022, Wang pled guilty to four felony counts of fraud and conspiracy.
Wang was a prosecution witness and testified against Bankman-Fried in 2023 at the trial that led to the latter’s conviction on fraud and related charges.
In addition, Wang claimed that Bankman-Fried ordered him to design code that gave Alameda Research, FTX’s affiliated hedge fund, unlimited access to FTX customer funds. Bankman-Fried was then convicted of stealing client assets to support Alameda, finance speculative investments, and make substantial political contributions.
Gary Wang appears to be the final Bankman-Fried associate to face sentencing for involvement in the extensive cryptocurrency fraud scheme.
The former FTX head of engineering, Nishad Singh, received an identical sentence to Wang in October 2024, following his cooperation in the case. However, Caroline Ellison, the former CEO of Alameda Research and ex-girlfriend of Bankman-Fried, already began serving a two-year federal prison sentence last month.
Like Wang and Singh, Ellison entered into a cooperation agreement with federal prosecutors and played a critical role as a key witness in the case against the former FTX CEO.
Gary Wang Praised by Prosecutors
Prosecutors commended Wang for cooperating with authorities, highlighting his proactive approach in assisting the investigation and his efforts to make amends.
“I took the easy path, the cowardly path, instead of doing the right thing,” Wang told the court. “I plan to spend the rest of my life doing everything I can to make amends.”
Wang was also praised for his significant technical contributions, particularly his role in developing fraud detection tools aimed at helping the government monitor financial markets. His cooperation and notable contributions led prosecutors to recommend a more lenient sentence.
Legal cases like Wang’s are influencing the future trajectory of the cryptocurrency industry. These high-profile cases highlight the growing urgency for stronger regulations and policing to curb crypto fraud.
Read More
- FTX’s New Lawsuit Against Binance and CZ Seeks $1.76 Billion
- FTX Secures $228 Million in Bybit Settlement to Repay Customers
- Caroline Ellison Seeks Leniency, Casts Herself as Victim in FTX Saga
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
