Gary Wang, the co-founder of the now-defunct crypto exchange FTX, was sentenced Wednesday to prison along with three years of supervised release for his involvement in a sweeping $8 billion fraud scheme. This makes him the fifth and final former FTX employee to be punished in the fallout from the company’s collapse.
Convicted after cooperating with authorities
Wang, who pleaded guilty on four criminal charges, including conspiracy to commit bank fraud and conspiracy to commit securities fraud, he faced a possible maximum sentence of 50 years.
However, according to According to CNBC, his cooperation with authorities played an important role in the court’s decision. He was ordered to forfeit $11 billion, in line with the sentences imposed on his co-defendants.
In court, Wang expressed deep regret for his actions, holding a single printed page that he did not refer to in his brief speech to customers and investors affected by the demise of FTX:
I took the easy way, the cowardly way, instead of doing the right thing. I’ll spend the rest of my life trying to make it right.
However, Wang’s defense team alleged that he did not have a full understanding of the exchange’s fraudulent activities, claiming that he was unaware of the misuse of client funds by FTX’s sister hedge fund, Alameda investigationuntil the plan was already in action.
A new chapter after the FTX scandal
Assistant U.S. Attorney Nicolas Roos praised Wang as an “exceptionally cooperative witness,” noting that he provided important insights into the FTX’s operations, which helped investigate the embezzlement of customer funds. This collaboration included helping the government understand the encryption underlying the exchange’s operations.
Since working with Wang, he has used his programming skills to identify potential fraud in both stock and… cryptocurrency markets. He is developing a tool aimed at identifying illegal activities in crypto transactions, a project that will continue alongside his ongoing cooperation with authorities.
Wang was the first FTX employee to approach the government but was the last to be convicted, marking the conclusion of criminal proceedings against former company executives.
This follows the conviction of other key figures, including Sam Bankman-Fried, who was given a 25-year prison sentence, and Caroline Ellisonthe former CEO of Alameda Research, who was sentenced to two years for her role in the fraud.
Judge Lewis Kaplan, known for his firm stance in high-profile cases, praised Wang for taking responsibility for his actions, saying, “You are entitled to a world of honor for facing up to your responsibility.” He acknowledged that Wang’s degree of culpability was relatively small compared to that of his co-defendants.
At the time of writing, FTX’s native token FTT is trading at $2.17, up a significant 30% in a fortnight, amid the broader market rally led by Bitcoin (BTC).
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