Gary Wang, co-founder of the now-defunct FTX cryptocurrency exchange, has requested leniency from a federal judge, urging for no jail time in light of his crucial testimony against former business partner Sam Bankman-Fried. Wang, who served as FTX’s chief technology officer, argued in a Nov. 6 court filing that his cooperation was vital in securing Bankman-Fried’s conviction for a massive fraud scheme that impacted countless investors.
Wang’s sentencing memo, submitted to Manhattan’s district court, emphasized his limited role in the alleged $10 billion fraud and compared his situation to that of other key insiders, including former Alameda Research CEO Caroline Ellison and FTX engineering director Nishad Singh. Like Wang, both Ellison and Singh cooperated with federal prosecutors and provided testimony against Bankman-Fried. Ellison received a two-year sentence in September, while Singh was granted time served, which Wang argues should set a precedent for his own sentencing on Nov. 20 before Judge Lewis Kaplan.
Highlighting his role in the investigation, Wang contended that he was among the first to cooperate with prosecutors, providing early insights into FTX‘s inner workings and shedding light on Bankman-Fried’s role in directing unauthorized fund transfers. According to Wang, Bankman-Fried instructed him to modify FTX’s code, enabling its affiliated hedge fund, Alameda Research, to divert and trade customer funds—a strategy that led to the company’s implosion in 2022. Wang maintains he initially lacked awareness of the full scale of these activities, claiming he only recognized the extent of the wrongdoing after it was well underway.
Wang’s defense argues that his role was far less central than those of Ellison and Singh, and that his deep cooperation, including support to FTX’s bankruptcy estate and efforts to aid class-action lawsuits, warrants a lighter sentence. He further asserted that jail time would interfere with his family obligations, noting he is employed as a software engineer and is expecting a child with his wife later this month.
Additionally, Wang’s attorneys highlighted his ongoing commitment to assist authorities in combating financial fraud, stating he has developed software tools for detecting fraudulent transactions in public markets and has been asked to design similar tools specifically targeting illicit crypto activity. According to his memo, Wang’s contributions to such efforts have been significant, benefiting both law enforcement and the financial sector’s approach to cryptocurrency regulation.
“Gary wants nothing more than to be a good husband and father and continue his work with the Government and other stakeholders to facilitate FTX victims’ recovery and mitigate the risk of future frauds,” reads the memo, which also underscores Wang’s potential for contributing to broader efforts to curb financial misconduct.
Also Read: How Proof Of Reserves (PoR) Protects Your Crypto Investments After FTX
The sentencing request also surfaces amid Bankman-Fried’s own ongoing legal battles. In September, the former FTX CEO appealed his 25-year sentence, claiming a lack of fair trial and asserting that FTX held sufficient assets to reimburse customers—an argument he claims the jury was not adequately presented with.
As Wang awaits his sentencing, the case serves as a stark reminder of the complexities and high stakes associated with prosecuting large-scale financial fraud in the evolving crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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