Inner City Press reports that the former FTX executive Gary Wang, who admitted to creating the code enabling Sam Bankman-Fried to misappropriate $8 billion from the now-bankrupt cryptocurrency exchange, has avoided prison.
Crypto Whistleblower or Accomplice? FTX’s Gary Wang Avoids Prison
Reuters further reports that U.S. District Judge Lewis Kaplan in Manhattan acknowledged Gary Wang’s cooperation with prosecutors and his lesser role in the scheme compared to other FTX associates. Inner City Press disclosed that Wang, in his early 30s, had pleaded guilty to four counts of fraud and conspiracy and testified against Bankman-Fried, who is serving a 25-year sentence for fraud.
Several crypto community members discussed the news on social media. “Being a rat pays off,” the Youtube shock jock Wendy O wrote on X. “FTX Cofounder gets no prison time. Know no one is your friend ever.” Binance founder, Changpeng Zhao, commonly known as CZ, responded to Wendy O’s post with an emoji of a man shrugging.
Wang, who co-founded FTX with Sam Bankman-Fried after reconnecting at MIT, expressed remorse, stating he took “the cowardly path” by not acting against the fraud. Despite learning of the illegal activities later, Wang continued working at FTX but has since assisted authorities, helping develop tools to detect financial fraud in cryptocurrency markets.
His sentencing concludes cases against FTX’s leadership, including Bankman-Fried’s former girlfriend Caroline Ellison and Nishad Singh, who received lighter sentences for their roles in the scandal.
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