FTX Co-Founder Wang Seeks Leniency, Citing Limited Role and Government Cooperation
Gary Wang, co-founder and former chief technology officer of collapsed crypto exchange FTX, has petitioned a Manhattan federal court to spare him from prison time, emphasizing his extensive cooperation with prosecutors and what he describes as a limited role in the $10 billion fraud scheme.
In a November 6 sentencing memo, Wang’s legal team, led by attorney Ilan Graff, argued that their client’s involvement was “much more limited” than that of other FTX executives, including former CEO Sam Bankman-Fried and Alameda Research CEO Caroline Ellison. Wang maintains he was unaware of the full scope of the fraud until it was “well underway.”
The former FTX executive, who is scheduled for sentencing on November 20, played a crucial role as a prosecution witness in Bankman-Fried’s trial. During his testimony, Wang revealed how he was directed to modify FTX’s code to grant special privileges to Alameda Research, though he claims he didn’t know these features would be exploited to misappropriate customer funds.
Wang’s petition for leniency comes after varying sentences for other FTX executives. While Bankman-Fried received 25 years in prison, Ellison was sentenced to two years, and former engineering director Nishad Singh recently avoided prison time altogether. Wang’s defense team argues that sentencing their client to prison would create an “unwarranted sentencing disparity” with Singh’s case.
Since FTX’s collapse, Wang has been working as a software engineer and has assisted authorities in developing tools to detect financial fraud in public markets and crypto exchanges. His lawyers also noted personal circumstances, including the imminent birth of his first child with his wife, Cheryl Chen, expected later this month.
The case represents one of the final chapters in the FTX saga, which saw the collapse of one of crypto’s largest exchanges and the conviction of its founder. The court’s decision on Wang’s sentence could set precedents for future cases involving cooperative witnesses in major financial fraud investigations.
