FTX Co-Founder Gary Wang Seeks to Avoid Prison Time
FTX co-founder Gary Wang should not receive prison time, his lawyer argued, highlighting the former executive's cooperation with authorities while stating he was unaware of the exchange's crimes.
According to a sentencing memorandum filed on Wednesday, Wang did not know that the sister firm, Alameda Research, was misusing FTX customers' funds, learning of the fraud only after it was already in progress. Wang is scheduled for sentencing in a New York court on November 20. He is also expecting the birth of his son a week later, on November 27, with his wife, Cheryl Chen, while working full-time as a software engineer. The memo notes his job involves supporting law enforcement, criminal investigators, and justice professionals in evidence preservation.
Wang's lawyer pointed out the challenges faced by his pregnant wife who is unable to work and emphasized that a custodial sentence would financially strain the family, potentially leaving them without their main source of support.
Wang pleaded guilty to fraud-related charges in December 2022, following FTX's collapse and subsequent bankruptcy amid a liquidity crisis and fraud allegations. Alameda Research also faced consequences, while former FTX CEO Sam Bankman-Fried received a nearly 25-year prison sentence on March 28 and was ordered to repay up to $11 billion in losses. He was convicted of multiple criminal counts, including fraud and conspiracy.
Wang and Bankman-Fried had been friends since high school, having met at a math camp. The defense memo described Wang's trusting nature, stating, "tragically, Gary’s compassion made him naive" and implying Bankman-Fried exploited this quality for his own ends. Wang testified at Bankman-Fried's trial about the privileges granted to Alameda Research accounts on FTX, maintaining that he was unaware of the plans to misappropriate customer funds.
Other FTX associates, including Nishad Singh and Caroline Ellison, received varying sentences, highlighting the complexity of the case and differing levels of cooperation with prosecutors.
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