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FTX co-founder Gary Wang spared from prison by US judge

Published 21/11/2024, 07:45 pm
© Reuters.  FTX co-founder Gary Wang spared from prison by US judge
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FTX co-founder Gary Wang will serve no prison time for his part in the collapse of the former cryptocurrency exchange, US District Judge Lewis (JO:LEWJ) Kaplan has ruled.

A former friend and associate of FTX co-founder Sam Bankman-Fried, Wang pleaded guilty in December 2022 to wire fraud and three conspiracy counts.

Wang helped to create the code that allowed FTX to siphon off over $8 billion in FTX customers’ funds to sister company Alameda Research.

The scandal led to numerous arrests and sentences, with Bankman-Fried slapped with a 25-year prison sentence and Caroline Ellison, the former boss of Alameda Research, copping a two-year sentence.

Alongside Wang, former FTX executive Nishad Singh also avoided prison time.

Both Wang and Singh cooperated with prosecutors and testified against Bankman-Fried.

Ryan Salame, who was co-chief executive of FTX's Bahamian subsidiary, received a seven-year sentence. He proceeded to change his LinkedIn title to Inmate/Camper Librarian at the Federal Correctional Institution, Cumberland.

In sparing Wang from prison, Judge Kaplan stated: “You're entitled to a world of credit for facing up to your responsibility.

"The period of your culpability was in comparison to the periods of the culpability of the other defendants in this case extremely small."

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