FTX Co-Founder Gary Wang Seeks No Jail Time, Citing Key Role in SBF’s Conviction

Jimmy Aki
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Gary Wang, the co-founder and former technology officer of the bankrupt cryptocurrency exchange FTX, has requested no jail time ahead of his sentencing in Manhattan federal court.

Wang’s legal team filed a sentencing memo on November 6, asserting that his cooperation with prosecutors played a pivotal role in securing the conviction of his fellow FTX co-founder, Sam Bankman-Fried, who is currently serving a 25-year prison sentence for a $10 billion fraud scheme.

Gary Wang’s Cooperation and Request for Time Served

According to the memo, Wang’s attorneys detailed how their client’s insight helped prosecutors understand FTX’s inner workings along with his testimony against Bankman-Fried during his trial, portraying him as one of the most cooperative witnesses in the case.

As a result, Wang’s legal team is pushing for a sentence of time served, highlighting his limited involvement in the fraud compared to other FTX figures like Caroline Ellison and Nishad Singh, who also cooperated but received lighter sentences.

Wang’s plea comes amid ongoing legal negotiations, as his sentencing is scheduled for November 20.

In September, Ellison received a two-year prison sentence, while Singh avoided jail time entirely after cooperating with authorities.

Wang’s memo also pointed out what his defense attorneys described as an “unwarranted sentencing disparity” between him and Singh.

The legal team also highlighted Wang’s personal circumstances, noting that he is expecting the birth of his first child shortly after the sentencing.

They suggested that granting Wang a non-custodial sentence would allow him to be with his family, aligning with how other co-conspirators were treated in the case.

Wang’s Role in the Sam Bankman-Fried Scandal and the FTX Fallout

Wang, a key member of Bankman-Fried’s inner circle, was one of the first to meet with prosecutors and offer details about FTX’s fraudulent operations.

As part of his cooperation, Wang provided valuable insights into how Bankman-Fried directed him to alter FTX’s code to allow Alameda Research, the hedge fund affiliated with FTX, to use customer funds for trading.

In his testimony, Wang explained that he was unaware of the full scope of the illegal activities when they began and was deceived by Bankman-Fried.

Gary Wang’s plea for leniency also rests on his efforts to assist in the recovery of FTX victims, including his work with the government to develop a tool to detect financial fraud in public markets and on crypto exchanges.

Meanwhile, Bankman-Fried, sentenced in March 2024, appealed his 25-year sentence, claiming he was never presumed innocent and that the jury never heard evidence that FTX had sufficient funds to repay customers.

The U.S. government is also working to recover approximately $13.25 million in political donations made by FTX executives, which were allegedly funneled into political action committees (PACs).

However, Judge Lewis Kaplan has granted additional time for discussions regarding the return of these funds, with a new deadline set for January 15, 2025.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.