Gary Wang, co-founder of FTX and one of the primary figures in the recent high-profile trial against former business partner Sam Bankman-Fried, is appealing for a no prison time sentence.
Wang, who is set to be sentenced on November 20 in Manhattan federal court, cited his early cooperation with prosecutors and lesser involvement in the fraudulent scheme that led to FTX’s downfall.
His defense counsel, Ilan Graff, submitted a memo urging the court to consider the disparity between Wang’s actions and those of others involved, such as Bankman-Fried, Alameda Research’s former CEO Caroline Ellison, and FTX’s engineering head Nishad Singh.
Gary Wang Wants No Prison Time: Should He Be Granted?
In his plea for leniency, Wang mentioned that his cooperation played a central role in Bankman-Fried’s conviction.
He described his participation as crucial in unraveling the complexities of the fraud.
Wang testified against Bankman-Fried, detailing how he had been instructed to adjust FTX’s code to enable Alameda Research, FTX’s sister company, to access customer funds without limitations.
Although Bankman-Fried was sentenced to 25 years, Wang’s defense argued that Wang’s role was more limited.
Wang’s lawyer stressed that his client was neither a principal architect of the fraud nor actively aware of its scope until after it had already begun.
“Gary was unaware of the scheme when it started, never informed of its particulars, and unlike Bankman-Fried, Ellison, and Singh, never once took an affirmative step to deceive anyone,”
According to Graff, Wang became involved in FTX through a long-standing personal connection with Bankman-Fried, whom he met at a math camp during their teenage years and with whom he later co-founded FTX.
According to court records, after the company’s collapse in November 2022, Wang quickly approached federal authorities to provide information and support their investigation.
Graff argued that sentencing Wang to prison would create an “unwarranted disparity” compared to Nishad Singh, who also cooperated with the prosecution and was granted time served, effectively avoiding prison.
Ellison, who held a central role as Alameda’s CEO, was sentenced to two years despite her cooperation, which her lawyers argued was essential to the case.
By contrast, Wang’s defense argues that his lower level of involvement and early cooperation support a non-custodial sentence, especially as Wang’s actions were driven by instructions rather than intent to deceive.
Graff also stressed that Wang’s circumstances warrant consideration, noting that he is expecting his first child with his wife just days after his sentencing.
Wang’s team argued that allowing him to remain free would enable him to continue cooperating with prosecutors in other ongoing investigations and maintain his role in assisting FTX’s victims.
In his final appeal, Wang expressed deep remorse, stating he “never intended to harm anyone” and emphasized his continued desire to assist in victim restitution.
The Larger Context: Court Judgement Decides
The court has faced significant pressure to balance leniency with justice for victims affected by FTX’s collapse.
The fraud orchestrated by Bankman-Fried and his inner circle resulted in estimated losses to customers and investors of $10 billion.
As one of the largest fraud cases in recent history, it has led to ongoing federal and civil recovery efforts, including a pursuit by the U.S. government to reclaim $13.25 million in political donations made by FTX executives, including Bankman-Fried and Singh.
Recently, Judge Lewis Kaplan granted the government additional time to negotiate the return of these funds, extending discussions with political action committees (PACs) until January 15, 2025.
Judge Kaplan’s decision will weigh heavily on the trajectory of future cases involving crypto-related fraud.
As it stands, Wang is more likely to receive a lenient sentence, just like it was given to Nishad Singh, who received a time-served sentence and avoided prison time.
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