FTX Co-Founder Gary Wang Avoids Prison

U.S. District Judge Lewis Kaplan handed down the sentence on Wednesday, citing Wang’s extensive cooperation with the government’s investigation into FTX’s failure. “You did the right thing,” Judge Kaplan told Wang, according to a report by Inner City Press. “You are entitled to a world of credit.”

Wang, who co-founded FTX with Sam Bankman-Fried, played a pivotal role as a government witness in Bankman-Fried’s criminal trial.

Key Witness in Bankman-Fried’s Trial

Wang’s testimony provided critical insights into how billions of dollars in customer funds were diverted to FTX’s sister trading firm, Alameda Research. He revealed details of FTX’s codebase, including a feature allowing Alameda to maintain “negative” balances and withdraw unlimited funds, including assets borrowed from the exchange.

After FTX’s collapse, Wang cooperated with prosecutors, pleading guilty to four felony counts of fraud and conspiracy. His assistance included creating a tool to detect fraud at FTX, described by Assistant U.S. Attorney Nicolas Roos as an “impressive” contribution.

Sentences for FTX’s Inner Circle

Wang’s sentencing marks the final chapter for the inner circle of FTX executives.

Caroline Ellison, ex-CEO of Alameda, received two years in prison in September after agreeing to forfeit $11 billion and cooperate with prosecutors.
Nishad Singh, FTX’s engineering chief, also avoided prison time in October due to his cooperation.
Ryan Salame, co-CEO of FTX Digital Markets, who did not testify, was sentenced to seven-and-a-half years in May.

Meanwhile, Sam Bankman-Fried, convicted on seven counts of fraud, money laundering, and conspiracy, is serving a 25-year prison sentence.

Wang’s Apology

Wang expressed deep regret for his actions during the hearing. “I am deeply sorry to all the customers and investors in FTX who trusted us,” he said. “There are so many things I could have done.”

Having left the crypto industry, Wang is now focusing on his personal life, with his first child on the way.

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