Gary Wang, the co-founder and former chief technology officer of FTX, has been spared prison time for his involvement in the crypto exchange’s collapse.
On Wednesday, he was sentenced to time served and three years of supervised release for each of the four criminal charges he pleaded guilty to.
Wang was also ordered to forfeit $11 billion, matching penalties imposed on other convicted FTX executives.
Wang, a key witness in the trial of ex-FTX CEO Sam Bankman-Fried, faced up to 50 years in prison for charges including conspiracy to commit wire fraud and securities fraud.
⚡️ LATEST: Gary Wang, former deputy to Sam Bankman-Fried, is spared prison time by a US judge for his role in the FTX crypto fraud.
However, his immediate cooperation with authorities and pivotal testimony earned him leniency.
During the court session, Wang expressed remorse, apologizing to FTX customers and investors.
“I took the easy path, the cowardly path, instead of doing the right thing,” Wang admitted in court. “I will spend the rest of my life trying to make amends.”
Wang’s defense team emphasized his limited role in the fraudulent activities, arguing that he only became aware of Alameda Research’s misuse of customer funds after the scheme had begun.
Judge Lewis Kaplan, known for his stern handling of white-collar crime cases, acknowledged Wang’s significant contributions to the investigation.
Assistant US Attorney Nicolas Roos highlighted Wang’s cooperation, describing him as instrumental in deciphering FTX’s complex coding systems that enabled the misappropriation of customer funds.
Prosecutors also credited Wang for leveraging his programming expertise to develop tools for detecting fraud in stock and cryptocurrency markets, a project that continues to assist government agencies.
Wang’s sentencing marks the conclusion of criminal proceedings against FTX’s former leadership. Other executives, including Alameda Research’s former CEO Caroline Ellison and ex-engineering chief Nishad Singh, also cooperated with authorities, resulting in reduced sentences.
Bankman-Fried, however, received a 25-year prison term earlier this year, the harshest punishment among the group.
Judge Kaplan commended Wang’s cooperation, stating, “I’ve never seen anything quite like what happened here. You’re entitled to a lot of credit.”
As Wang transitions to supervised release, the crypto industry remains under scrutiny, with regulators and prosecutors aiming to prevent similar fraud in the evolving digital asset market.
The post Gary Wang, FTX co-founder, avoids jail time in crypto fraud case: ‘I will spend the rest of my life trying to make amends’ appeared first on Invezz
