Key Takeaways
- Wang is seeking a sentence without prison time ahead of his scheduled sentencing
- Wang’s legal team stated he was one of the first to work closely with prosecutors to provide evidence against Bankman-Fried.
FTX co-founder Gary Wang is asking a U.S. federal judge to spare him jail time, arguing that his cooperation played a important role in the conviction of his former business partner, Sam Bankman-Fried. Wang, once the techn chief of the now-collapsed FTX crypto exchange, submitted a request to a Manhattan federal court on November 6, seeking a sentence without prison time ahead of his scheduled sentencing on November 20.
Wang’s legal team defending that he was one of the first to work closely with prosecutors to provide evidence against Bankman-Fried. His attorneys argue that Wang’s involvement in FTX’s financial misconduct was more limited than that of other executives, including Bankman-Fried and former Alameda Research CEO Caroline Ellison. Both Ellison and Nishad Singh, FTX’s former head engineer, also took plea deals and testified against Bankman-Fried during his high-profile trial.
In their November 6 court filing, Wang’s lawyers maintain that he played a less direct role in the alleged misuse of FTX customer funds. As per the filing Wang, acting under Bankman-Fried’s instructions, made changes to FTX’s code that allowed Alameda, FTX’s sister trading firm, to access billions of dollars in customer deposits. His legal team argues, however, that he was not aware of the full scope of the fraud. They claim Wang was “unaware of the scheme when it started” and “never took an affirmative step to deceive anyone,” unlike other executives.
Bankman-Fried was convicted on charges including fraud and conspiracy last month and subsequently sentenced to 25 years in prison.
Wang’s attorneys also pointed to the treatment of other former FTX insiders. Ellison, who was convicted on similar charges, received a suspended two-year sentence, while Singh was sentenced to time served. Citing these cases, Wang’s legal team argues that a prison sentence for him would result in an “unwarranted sentencing disparity.”
The court filing highlights Wang’s efforts to rebuild his life since FTX’s collapse. He has secured a job as a software engineer, got married in 2023. His attorneys argue that he is committed to “being a good husband and father”.
Judge Lewis Kaplan will consider these arguments, along with Wang’s early cooperation, as he decides the former FTX executive’s sentence on November 20.
