How one co-founder avoided jail in $11 billion FTX scandal
Gary Wang, the co-founder of FTX, has avoided prison time owing to his extensive cooperation in a case against Sam Bankman-Fried. The decision was revealed on Wednesday after both a prosecutor and federal judge praised Wang's work to help victims of the cryptocurrency fraud recover funds. Wang gave critical testimony over three days about his role as FTX's chief technology officer during Bankman-Fried's trial last year.
Testimony aids in extradition of Bankman-Fried
Judge Lewis A. Kaplan acknowledged Wang as the first person to cooperate after FTX's collapse in November 2022. Assistant US Attorney Nicolas Roos said Wang's information helped quickly extradite Bankman-Fried from the Bahamas in December 2022. Bankman-Fried is now serving a 25-year prison term for a fraud that misappropriated over $11 billion of money belonging to customers, investors, and lenders.
Wang expresses remorse for his actions
During the sentencing, Wang expressed regret for his actions and apologized to customers and investors. "I'm deeply sorry to all the people hurt by my actions," he said. "There were so many things I could have done differently." He admitted that he chose a cowardly path instead of doing what was right, acknowledging that nothing he does can ever fully compensate for his mistakes.
Cooperation praised as heroic
Roos praised Wang's post-fraud work, calling him "the first FTX cooperator to come in the door." He said Wang played a minor role in the fraud and wasn't responsible for writing the complex computer code that enabled it. On his first meeting with prosecutors, Wang "deciphered basically half the case for us," Roos said. He also emphasized Wang has continued to help multiple agencies and those trying to recover money for FTX investors.
Wang's software aids in uncovering financial frauds
Roos revealed that Wang has developed software that is helping prosecutors detect unrelated financial frauds. This further highlights his continued cooperation with authorities since the FTX scandal. As he handed down the sentence, Judge Kaplan said that Wang had "limited culpability" in the fraud, a factor that was probably taken into account in his decision to spare him from prison time.
