FTX co-founder Gary Wang has been sentenced to a term of suspended and supervised release for his role in the multibillion-dollar fraud. Only three of the five executives involved will serve time in prison for fraud and theft. Wang admitted that FTX sent billions of dollars of client money to its sister company, Alameda Research, without users’ consent.
He revealed that Alameda was allowed to borrow unlimited amounts and maintain a negative balance on FTX, effectively using customer assets to cover losses and fund operations. This information, along with Wang’s testimony and the development of software tools to assist the investigation, played a crucial role in the prosecution of former FTX CEO Sam Bankman-Fried and other executives.
In addition to his testimony, Wang took proactive steps to assist the investigation by developing software tools to help prosecutors detect securities fraud. Wang pleaded guilty to four counts and was sentenced to prison terms to be served on each count but three years of supervised release. The longest sentence was given to the founder of FTX and majority owner of Alameda Research, Sam Bankman-Fried.
He was sentenced to 25 years in prison. FTX Digital Markets CEO Ryan Salame received the second longest sentence of seven and a half years for his role in using client money for influential political donations. Caroline Ellison, the co-CEO of Alameda Research and Bankman-Fried’s on-and-off romantic partner, was sentenced to two years on fraud and conspiracy charges after receiving a major leniency for cooperating with prosecutors and law enforcement.
Wang and FTX CTO Nishad Singh avoided jail time. This reflects both their cooperation with the prosecution and their more peripheral role in the massive fraud.
Source
<p>The post FTX Executives Get Prison Sentences for Fraud and Theft first appeared on CoinBuzzFeed.</p>