In summary
- Gary Wang, co-founder and former top executive of the collapsed FTX crypto empire, has asked a judge to exempt him from prison.
- Wang pleaded guilty to fraud in December 2022 and was one of the first to cooperate with authorities.
- Wang is scheduled to be sentenced on Nov. 20, and his attorney argues that a non-custodial sentence would be in the defendant’s best interest.
Gary Wang, a co-founder and former top executive of the now-collapsed FTX crypto empire, has asked a judge to exempt him from prison after a fellow executive managed to avoid a lengthy sentence.
The founder’s lawyer argued that Wang faced fewer criminal charges in the case and was one of the first to admit guilt, court documents filed Wednesday show.
Wang pleaded guilty to fraud in December 2022, a month after the company’s rapid and unexpected collapse and subsequent bankruptcy filing.
“He was the first to cooperate,” wrote Ilan Graff, Wang’s attorney. “He received no bonus payments, obtained smaller magnitudes of money from FTX and Alameda than his co-defendants, and never changed his simple lifestyle.”
Graff went on to say that Wang “never aspired to fame or the luxuries of wealth” like those his co-defendants had, played a “more limited role” in the collapse of FTX, and argued that a non-custodial sentence would be best. for the accused.
He added that Wang’s quick cooperation with authorities “radically accelerated” prosecutors’ work in the case.
Computer programmer Wang helped establish the giant Cryptocurrency exchange, but kept a much lower profile than his co-founder and former CEO, Sam Bankman-Fried.
He was a key witness in the FTX case, testifying in 2023 that company insiders, especially Bankman-Fried, had access to exchange clients’ deposits to place bets at Alameda Research, a sister company and trading desk. .
Wang’s sentencing is scheduled for Nov. 20.
FTX was one of the leading cryptocurrency exchanges and one of the most recognized brands in the crypto industry. He had deals with major American sports teams and even donated to political parties.
But it unexpectedly went bankrupt in November 2022 amid a liquidity crisis. Billions of dollars disappeared from clients and Bankman-Fried, better known as SBF, who was arrested, charged and subsequently jailed for fraud and criminal mismanagement of the exchange. He is now serving a 25-year prison sentence, and a judge earlier this month approved a plan to repay the exchange’s former clients with the $16 billion recovered since the epic collapse.
Bankman-Fried recently filed an appeal, with his legal team suggesting he was “presumed guilty” going into the trial.
Other top executives at the exchange have also been sentenced to prison.
Caroline Ellison, who was CEO at Alameda and Bankman-Fried’s ex-girlfriend, received two years in prison after pleading guilty to two counts of wire fraud and conspiracy to commit wire fraud, as well as conspiracies to commit money laundering, commodities fraud and securities fraud. Ellison received a lighter sentence after cooperating with authorities.
Ryan Salame, who was co-CEO of FTX Digital Markets, received seven and a half years. And Nishad Singh, FTX’s chief engineer, avoided jail last month after a judge praised him for being a key witness in the case and helping recover funds in bankruptcy proceedings.
Edited by Andrew Hayward
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
