Gary Wang, co-founder and former chief technology officer of crypto exchange FTX, was sentenced to time served with no additional jail time after providing extensive cooperation to U.S. prosecutors in one of the largest financial fraud cases in history, as reported by Inner City Press.
Inner City Press shared live updates from the court via its X account detailing that Judge Lewis A. Kaplan acknowledged Wang’s significant assistance during the sentencing hearing, stating,
“If this wasn’t the biggest financial fraud in U.S. history, it was certainly among the biggest two or three.”
Wang faced up to 50 years in prison but began cooperating with authorities shortly after FTX’s collapse in November 2022.
Prosecutor Andrew Roos emphasized the uniqueness of Wang’s cooperation, highlighting his technical expertise and willingness to assist from the outset. “He deciphered half the case for us on the first day of his cooperation,” Roos said. Wang’s insights were crucial in understanding how FTX’s code allowed for the misappropriation of customer funds, which played a central role in the fraudulent activities tied to the exchange.
Wang admitted that FTX had sent billions of dollars in customer funds to its sister trading firm, Alameda Research, without user consent. He revealed that Alameda was permitted to borrow unlimited amounts and maintain a negative balance on FTX, effectively using customer assets to cover losses and fund operations. These disclosures were instrumental in building the case against former FTX CEO Sam Bankman-Fried and other executives.
Beyond his testimony, Wang took proactive steps to aid the investigation. He developed software tools to help prosecutors detect securities fraud, dedicating personal time to these efforts. “He was the easiest cooperator I’ve ever worked with,” Roos noted, adding that Wang’s contributions could assist in uncovering future fraud cases before they escalate.
During the hearing, Wang expressed deep remorse for his actions. “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.” He pledged to continue assisting efforts to make cu
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Author: Liam ‘Akiba’ Wright
