- Judge Lewis Kaplan ruled no prison time for FTX co-founder Gary Wang, citing his cooperation in the case.
- The judge sentenced him to time served, three years of supervised release, and ordered the forfeiture of $11 billion.
- Attorney Nicolas Roos states Wang’s immediate decryption of FTX’s code had significantly helped in the investigation’s progress
Gary Wang, co-founder and former Chief Technology Officer of FTX, has been spared prison time in the FTX fraud case from his cooperation with authorities. On November 20, 2024, US District Judge Lewis Kaplan sentenced Wang to time served, three years of supervised release, and ordered him to forfeit $11 billion in illegally obtained funds.
Wang, who testified against former FTX CEO Sam Bankman-Fried, was facing a potential 50 years on four criminal counts, including wire fraud and securities fraud conspiracy. Following former Engineering Chief Nishad Singh’s successful bid to avoid prison time earlier, Wang had sought a similar leniency, citing his own cooperation.
On November 6, Wang’s lawyer Ilan Graff submitted a sentencing memo to the court, arguing the defendant deserved a non-custodial sentence. He cited Wang’s cooperation and minimal role in the fraud as reasons for leniency. Graff also claimed that Wang was unaware of Bankman-Fried’s scheme but then was forced to participate. Additionally, he highlighted the condition of Wang’s wife, Cheryl, who was nine months pregnant at the time.
Prosecutors and Judge Acknowledge Wang’s Cooperation
Assistant US Attorney Nicolas Roos praised Wang’s support in unveiling the case, asserting that his immediate decryption of FTX’s code has significantly helped in the investigation’s progress. Corroborating Griff’s statements, Roos stated that Wang wasn’t aware of Bankman-Fried’s conspiracy.
Read also: Binance Caught in FTX Crossfire: US Department of Justice to Seize $16 Million in Crypto
In the ruling, Judge Kaplan acknowledged Wang’s cooperation, stating, “I’ve never seen anything quite like what happened here.” He added that Wang is “entitled to a world of credit.” This ruling makes Wang the fifth and final executive to be sentenced in the $8 billion FTX fraud case. Caroline Ellison, former CEO of Alameda Research, received a two-year prison sentence, while Ryan Salame, FTX’s Bahamas Head, will serve seven and a half years.
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