Emily Walker
Gary Wang, a co-founder of the collapsed crypto exchange FTX, was sentenced on Wednesday to time served and three years of supervised release for his role in an $8 billion fraud scheme. He is the final former employee of FTX to be sentenced following the company’s failure.
Sentence Influenced by Cooperation with Law Enforcement
Wang pleaded guilty to four charges, including conspiracy to commit wire fraud and securities fraud, which could have led to a maximum sentence of 50 years.
However, his cooperation with law enforcement significantly impacted the judge’s decision, as reported by CNBC. He was also ordered to forfeit $11 billion, consistent with the penalties of his co-defendants.
In his court appearance, Wang showed genuine regret for his misconduct and stated to the affected customers and investors:
I took the easy path, the cowardly path, instead of doing the right thing. I will spend the rest of my life trying to make amends.
His legal team argued that Wang was not fully aware of the fraudulent activities occurring within FTX, claiming he only learned about the misuse of customer funds by Alameda Research after the scheme had begun.
Moving Forward After the FTX Scandal
Assistant US Attorney Nicolas Roos praised Wang’s cooperation, noting he provided vital information about FTX’s operations and customer fund misappropriation, including insights into the exchange’s coding.
Since cooperating with authorities, Wang has been using his programming expertise to develop a tool for identifying potential fraud in both stock and cryptocurrency markets. This effort will continue as he maintains his collaboration with law enforcement.
Wang was the first employee to approach the government, although he was the last to be sentenced, concluding the criminal cases against FTX’s former executives.
This comes after other notable figures were sentenced, such as Sam Bankman-Fried, who received a 25-year prison term, and Caroline Ellison, former CEO of Alameda Research, who was sentenced to two years for her involvement in the fraud.
Judge Lewis Kaplan, known for his tough approach in high-profile cases, acknowledged Wang’s acceptance of responsibility, stating, “You’re entitled to a world of credit for facing up to your responsibility,” and recognized that Wang’s involvement was less severe compared to his co-defendants.
As of now, FTX’s native token, FTT, is trading at $2.17, reflecting a notable increase of 30% over the past two weeks, amidst a broader market rally led by Bitcoin (BTC).
Featured image from DALL-E, chart from TradingView.com