Former FTX executive Gary Wang spared prison time for role in crypto fraud
‘Making Money’ host Charles Payne reacts to Sam Bankman-Fried’s 25-year prison sentence.
A former top FTX executive charged with writing computer code for now imprisoned FTX founder and CEO Sam Bankman-Fried to help steal billions of dollars from cryptocurrency customers, was spared prison time by a Manhattan judge on Wednesday.
U.S. District Judge Lewis Kaplan said during a hearing in federal court in Manhattan that he would not be imposing prison time on former FTX Chief Technology Officer Gary Wang.
Instead, Kaplan praised Wang’s cooperation with U.S. prosecutors, noting that he learned of Bankman-Fried’s fraud later than others in his former boss’s circle.
“You’re entitled to a world of credit for facing up to your responsibility,” Kaplan said. “The period of your culpability was in comparison to the periods of the culpability of the other defendants in this case, extremely small.”
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Former FTX Chief Technology Officer Gary Wang leaves Manhattan Federal Court after testifying during the trial of FTX CEO Sam Bankman-Fried, Oct. 10, 2023, in New York City. (Michael M. Santiago/Getty Images / Getty Images)
Wang, who is in his 30s, pleaded guilty to four felony counts of fraud and conspiracy, and last year he testified as a prosecution witness in the trial that led to Bankman-Fried’s conviction on fraud and other charges.
The two met at a summer math camp when they were in high school, and reconnected while studying at the Massachusetts Institute of Technology. Eventually, the two went into the cryptocurrency business together.
Wang and several other FTX executives lived with Bankman-Fried in a $35 million penthouse in the Bahamas, where the exchange was based until it went bankrupt in November 2022.
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Sam Bankman-Fried leaves court in New York City, July 26, 2023. (Yuki Iwamura/Bloomberg via Getty Images / Getty Images)
Bankman-Fried is now serving a 25-year prison sentence imposed by Kaplan after being found guilty by a jury last year of stealing customer money to prop up his Alameda Research hedge fund, making speculative venture investments, and contributing to U.S. political campaigns.
Wang testified against his boss in October 2023, saying Bankman-Fried instructed him to adjust the company’s software code to give Alameda special privileges and enabling the fund to secretly withdraw billions of dollars from the exchange.
After learning of the fraud, Wang’s attorneys acknowledged, he continued to work to maintain the FTX platform. He apologized for his actions on Wednesday.
The FTX Cryptocurrency Derivatives Exchange logo on a laptop screen. (Andrey Rudakov/Bloomberg via Getty Images / Getty Images)
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