FTX Co-Founder Gary Wang escapes prison sentence in $8 billion fraud case
|- Gary Wang, co-founder of FTX, was sentenced to time served and three years of supervised release, with his cooperation in the $8 billion fraud case influencing the court's leniency.
- Wang lost $11 billion, shared critical insights on FTX’s operations and is now creating tools to identify fraud in crypto and stock markets.
- The sentencing ends the criminal cases against former FTX executives Sam Bankman-Fried and Caroline Ellison, marking the end of the exchange’s legal issues.
Gary Wang, co-founder of the cryptocurrency exchange FTX, was sentenced to time served and three years of supervised release on Wednesday for his involvement in a $8 billion fraud scheme. Wang is now the last former FTX employee sentenced related to the exchange's collapse, as reported by CNBC.
Wang admitted guilt to four charges, including conspiracy to commit wire fraud and securities fraud, which could lead to a maximum sentence of 50 years.
His extensive cooperation with authorities significantly influenced the court's decision.. In addition to his sentence, Wang must forfeit $11 billion, in line with the penalties imposed on his co-defendants.
Wang’s ongoing role in investigations
Wang expressed deep regret in court for his role in FTX's collapse, delivering a short and sincere statement to customers and investors. Holding a single printed page he didn't reference, he regretted the exchange's collapse.
Wang’s defense attorneys claimed he was largely unaware of the company’s fraudulent activities. They asserted he did not know that FTX’s sister hedge fund, Alameda Research, misused customer funds until the scheme was underway.
Assistant United States (US) Attorney Nicolas Roos called Wang a "highly cooperative witness" and said he was a crucial part of showing how FTX worked on the inside and how customer funds were stolen. Wang gave investigators detailed explanations of the platform's code, which proved to be very important.
Wang has used his programming skills for fraud detection in stock and cryptocurrency markets after collaborating with authorities. He is developing a tool to identify illegal activities in crypto transactions and will continue this project while assisting with ongoing investigations.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.