FTX Co-Founder Gary Wang Appeals for Leniency Ahead of Sentencing: Report

Gary Wang, the co-founder of the now-bankrupt cryptocurrency trade FTX, is in search of to keep away from jail time as he awaits sentencing scheduled for November 20 in Manhattan federal courtroom.

He has requested a federal choose to think about his cooperation within the fraud trial towards his long-time good friend and former FTX CEO, Sam Bankman-Fried, also referred to as SBF.

Cooperation and Lesser Position in Fraud

In line with a Bloomberg report citing his sentencing memo filed on Wednesday, Wang’s legal professional, Ilan Graff, argued that his shopper’s cooperation and relatively lesser involvement within the FTX fraud scheme ought to result in a non-custodial sentence.

Per the report, Graff famous that Wang’s position within the scheme was much less central than that of different cooperating executives, together with former Alameda Analysis CEO Caroline Ellison and FTX engineering government Nishad Singh.

“Gary was unaware of the scheme when it began, by no means knowledgeable of its particulars, and in contrast to Bankman-Fried, Ellison, and Singh, by no means as soon as took an affirmative step to deceive anybody.”

In line with the memo, imposing jail time on Wang would create an “unwarranted sentencing disparity” between him and Singh. Ellison and Singh testified in Bankman-Fried’s trial, with the previous receiving a two-year jail sentence and the latter avoiding jail fully.

Graff additionally emphasised Wang’s vital position as a witness, which he argued helped prosecutors safe Bankman-Fried’s conviction.

Additional, he highlighted private components, together with how the previous CTO has tried to rebuild his life for the reason that FTX fiasco. He started a brand new job at an imaging expertise firm in early 2023 and married shortly after.

Wang and his spouse expect the start of their first baby simply days after his scheduled sentencing. His legal professional described him as somebody who “desires nothing greater than to be a great husband and father” and to proceed his work with authorities authorities and different stakeholders to assist get well funds for FTX victims and scale back the danger of future fraud.

Wang’s Responsible Plea and Testimony

The 31-year-old pleaded responsible in 2022 to federal fees tied to a scheme to defraud buyers. His admission got here shortly after FTX’s dramatic collapse and was a part of a deal he reached with prosecutors to cooperate within the investigation.

Wang’s testimony grew to become important to the case towards Bankman-Fried, with the previous CTO taking the stand in 2023 to confess his position in FTX’s operations. He confessed to the jury that he had enabled wire fraud by modifying FTX’s code to permit Alameda Analysis limitless entry to buyer funds.

Wang and Bankman-Fried had been shut associates since assembly at a math camp of their teenagers, later changing into fraternity brothers at MIT. After a short stint at Google, he joined SBF at Alameda Analysis, and collectively they co-founded FTX in 2019.

They finally moved to the Bahamas, the place they shared an organization penthouse. Whereas Bankman-Fried dealt with investor relations as FTX’s public face, Wang labored quietly within the background as chief expertise officer.