The court sentenced the FTX co-founder and long-time friend of Sam Bankman-Fried to no jail time and three years of supervised release.

Authorities credit Wang’s help with their fast extradition of the ex-CEO from the Bahamas in December 2022.

Cooperation With Prosecutors Exempts Wang From Prison

On November 20, Gary Wang was sentenced for his involvement in the 2022 collapse of crypto exchange FTX. Wang became the second testifying party to avoid prison time, joining ex-FTX engineering chief Nishad Singh, who received his sentence in October.

“You did the right thing for yourself, and the right thing for the country. If this wasn’t the biggest financial fraud in US history, it was certainly among the biggest 2 or 3. It is the judgment of this court that you be committed to time served three years of supervised release,” Judge Lewis A. Kaplan said during the trial.

The former FTX CEO Sam Bankman-Fried is serving a 25-year prison sentence for embezzling over $11 billion in customer and investor funds. The court found him guilty of seven counts of fraud, money laundering, and conspiracy. He has since filed an appeal.

Authorities charged Alameda’s ex-CEO, Caroline Ellison, in September. They ordered her to forfeit the money and sentenced her to two years in prison. Last year, Wang testified in the case, detailing how FTX’s sister firm, Alameda Research, illegally drew funds using an unlimited line of credit.

According to Wang’s testimony, Alameda had special access to an ‘allow negative balance’ feature due to changes made to the FTX codebase. This meant that their withdrawals could come from assets borrowed from the exchange.

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Author: Farah Ibrahim