Former FTX CTO Gary Wang avoids prison time for role in crypto fraud

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Gary Wang, the former chief technology officer of FTX who helped founder Sam Bankman-Fried steal nearly $8 billion from customers, avoided prison time at his sentencing on Wednesday in Manhattan federal court.

As reported by Reuters, US District Judge Lewis Kaplan’s decision came after Wang pleaded guilty to four felony counts of fraud and conspiracy.

Wang testified as a prosecution witness in the trial of FTX founder Sam Bankman-Fried, who was convicted of fraud and other charges.

Wang and Bankman-Fried’s relationship began at a high school summer math camp and continued through their studies at MIT.

They later shared a $35 million penthouse in the Bahamas with other FTX executives until the exchange’s November 2022 bankruptcy.

During Bankman-Fried’s trial in October 2023, Wang testified that his former boss directed him to modify FTX’s software code, giving Alameda Research hedge fund special privileges to secretly withdraw billions from the exchange.

Manhattan federal prosecutors recommended leniency for Wang, citing his cooperation in the case against Bankman-Fried and his lesser involvement in the fraud scheme.

“He did not spend a dime of customer money,” prosecutors wrote.

Wang is currently developing software to help detect fraud in crypto markets, building on similar work he completed for the US government’s stock market oversight.

The sentencing marks the final chapter for Bankman-Fried’s inner circle.

Former Alameda CEO Caroline Ellison received a two-year prison sentence in September, while fellow FTX programmer Nishad Singh also avoided prison time.

Bankman-Fried is serving a 25-year sentence while appealing his conviction.

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