Co-founder of the collapsed FTX, Gary Wan, is assisting the U.S. government in creating software for oversight and fraud prevention. This became known from court documents.
Wan's defense revealed his involvement in two projects: the first is designed to detect potential scams in public markets, and the other is to identify illegal activities on cryptocurrency trading platforms.
New facts have emerged as the final hearing in the case of the co-founder of the bankrupt exchange approaches. The sentencing is scheduled for November 20.
"Gary deeply regrets and has taken extraordinary steps to assist the government and others working on behalf of the FTX victims. For these reasons, we respectfully ask the court to impose an appropriate sentence," the statement reads.
According to lawyers, Wan's cooperation goes beyond technology development. It includes "critically important testimony" that contributed to the prosecution of former FTX CEO Sam Bankman-Fried. He provided information about a "backdoor" for Alameda and the use of random generation for the trading platform's insurance fund volumes.
The defense argues that Wan is invaluable in clarifying the technical aspects of FTX operations for investigators. Additionally, his ongoing work with law enforcement has aided regulatory understanding of vulnerabilities in the cryptocurrency market.
However, it is unclear whether these factors will help him avoid actual prison time.
On November 7, former Alameda CEO Caroline Ellison began serving her prison sentence at the Danbury Federal Correctional Institution in Connecticut, reports The Block.
In September, the court sentenced Ellison to two years in prison and confiscation of $11 billion on charges of fraud and money laundering.
She, along with Van, cooperated with the investigation and testified against the founder of FTX.
Recall that in November 2023, Bankman-Fried was found guilty on all counts by the jury. In March 2024, he was sentenced to 25 years in prison. The lawyers filed an appeal against the court's decision.
The former head of FTX's Bahamian division, Ryan Salame, was sentenced to 7.5 years in prison but was allowed to postpone the start of his sentence due to a dog bite.
