Emily Walker
Gary Wang, a co-founder of FTX, has requested a non-custodial sentence through his legal representatives, as noted in a memorandum submitted on November 6, related to the case of the United States v. Sam Bankman-Fried.
The programmer contends that he should not face imprisonment for his role in the FTX collapse, highlighting that he served as a key witness against Bankman-Fried.
Wang’s attorney, Ilan Graff, argued that his continuous cooperation with the legal process should exempt him from jail time, reflecting a lack of guilt that warrants a non-custodial sentence.
Earlier in the year, on March 28, Bankman-Fried was sentenced to 25 years in prison and ordered to pay up to $11 billion. Wang, being a significant witness and participant, is scheduled for his official sentencing on November 20.
Gary Wang’s Role as a Key Witness
In a sentencing document submitted on November 6, Wang urged the court to spare him from prison time, emphasizing his contribution to the case. The document stated that his testimony was vital for the prosecution.
The filing described Wang as having “testified powerfully” over three days, detailing how Bankman-Fried manipulated the framework for personal gain.
Wang argued that his involvement in the FTX fraud exceeding $10 billion was limited and less significant compared to others like Caroline Ellison and Nishad Singh, who he claims played larger roles.
Scheduled Sentencing on November 20th
Reports indicate that Wang’s sentencing is set for November 20, with Judge Lewis Kaplan presiding. Previously, in September, Judge Kaplan had given Ellison and Singh a two-year sentence for time already served.
Wang defended his stance, asserting that any potential sentence should consider his cooperation and minimal involvement, rather than draw parallels with Singh’s involvement.
Gary Wang’s Connection to Bankman-Fried
Wang was closely associated with Sam Bankman-Fried at FTX and played a significant role in discussions with U.S. prosecutors to negotiate a plea deal in exchange for insights about FTX’s operations. His disclosures contributed to the understanding of FTX’s bankruptcy and the lawsuits that followed.
Wang was also a witness in Bankman-Fried’s trial, revealing how his co-founder directed him to modify the exchange’s software, which enabled Alameda Research to misappropriate customer funds until the practice was uncovered in 2022.
Alameda Research, a firm co-founded by Bankman-Fried in 2017, was involved in global transactions of cryptocurrency.
Wang emphasized that he played a minimal role in the fraud, stating he was misled by his friend and only came to realize the extent of the wrongdoing later. In addition to participating in the trial, he collaborated with the authorities to develop software aimed at detecting fraudulent activities.
Featured image credit: Yuki Iwamura, Bloomberg/Getty Images; chart from TradingView