Gary Wang, the co-founder of the collapsed cryptocurrency exchange FTX, dodged jail time for his role in an $8 billion fraud. He received a sentence of time served plus three years of supervised release. This wraps up the criminal cases against the main FTX players.
Wang’s Cooperation Was Key
Wang pleaded guilty to several serious charges, including fraud conspiracies. He could have faced 50 years in prison. However, his extensive cooperation with authorities significantly influenced the judge’s decision. As part of his sentence, he’ll forfeit a whopping $11 billion.
Showing Remorse, But Claiming Limited Knowledge
In court, Wang expressed deep regret, stating he took “the easy path, the cowardly path.” His legal team argued he wasn’t fully aware of the fraudulent activities until they were already underway, particularly the misuse of customer funds by Alameda Research, FTX’s sister company.
A Helping Hand in Fighting Fraud
Prosecutors praised Wang’s cooperation, highlighting his assistance in understanding FTX’s inner workings and the code behind the fraud. Interestingly, he’s now using his programming skills to help detect fraud in both the stock and crypto markets, developing a tool to identify illegal crypto transactions.
The Final Sentence, and the Aftermath
Wang was the first FTX employee to cooperate with the government but the last to be sentenced. His relatively light sentence contrasts with the 25-year prison sentence given to Sam Bankman-Fried (SBF) and the two-year sentence given to Caroline Ellison. Judge Kaplan acknowledged Wang’s lesser culpability compared to his co-defendants, praising his acceptance of responsibility.
FTT Price Surge
At the time of writing, FTX’s token, FTT, is trading at $2.17, a significant increase of 30% over the past two weeks, likely due to a broader crypto market rally.
