Gary Wang, co-founder of FTX and former Chief Technology Officer, has requested no jail time in his upcoming sentencing, highlighting his extensive cooperation with prosecutors in the conviction of fellow FTX co-founder Sam Bankman-Fried. Wang, a crucial witness in Bankman-Fried’s trial, is set for sentencing on Nov. 20 in Manhattan’s district court.
In a Nov. 6 memo to the court, Wang’s legal team argued for “time served,” emphasizing that his testimony was central to the government’s successful case. Bankman-Fried, who was convicted in April and sentenced to 25 years, allegedly orchestrated a scheme involving the misuse of $10 billion in FTX customer funds. Wang, however, maintains he played a “limited role” in the fraud compared to others, including former Alameda Research CEO Caroline Ellison and FTX engineering director Nishad Singh, both of whom also cooperated with prosecutors and received plea deals.
Wang’s Contributions and Cooperation
Wang’s plea to Judge Lewis Kaplan stresses his prompt cooperation with prosecutors and his assistance in the FTX bankruptcy proceedings. In his testimony, Wang recounted how Bankman-Fried directed him to alter FTX’s code to grant Alameda, FTX’s affiliated hedge fund, unauthorized access to customer funds. According to Wang, he was unaware of the full extent of the alleged fraud until it had already escalated, claiming he was misled by Bankman-Fried.
Wang also noted his continued support to government agencies, including developing software for detecting financial fraud in public markets. He mentioned that he is actively collaborating on a tool designed to identify illegal activities on crypto exchanges.
Sentencing Comparisons and Family Considerations
Wang’s attorneys argue that a custodial sentence would create an “unwarranted sentencing disparity,” pointing out that Nishad Singh was sentenced to time served, while Caroline Ellison received a two-year sentence. His legal team believes jail time would disregard Wang’s relatively minor role and his exceptional cooperation with authorities.
Wang also cited personal circumstances, sharing that he’s currently employed as a software engineer, supporting his family, and expecting a son with his wife later this month. His memo emphasizes his commitment to assisting FTX victims and his desire to build a stable future for his family.
Bankman-Fried’s Appeal and Continuing Legal Developments
Meanwhile, Bankman-Fried has appealed his 25-year sentence, alleging that he was unfairly convicted and that the jury did not receive all relevant financial evidence regarding FTX’s solvency. The appeal claims he was “never presumed innocent” and maintains that FTX had sufficient funds to cover customer withdrawals.
As Judge Kaplan prepares for Wang’s sentencing, the decision may set further precedents on how the justice system handles the varying degrees of involvement in the FTX scandal. Wang’s plea highlights the critical role he played in Bankman-Fried’s conviction and underscores the broader implications for crypto-related fraud cases.
