FTX Co Founder Gary Wang Appeals For No Jail Time, Here’s Why

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As a seasoned crypto investor who has witnessed the rise and fall of numerous digital assets, I find myself intrigued by the case of FTX co-founder Gary Wang. Having invested in FTX during its boom, I can empathize with his predicament.

Gary Wang, one of the founders of FTX, has asked a federal court not to imprison him. In his defense, he mentioned that he’s providing testimony against his longtime acquaintance, Sam Bankman-Fried, who is involved in a fraud case.

In a Manhattan federal court, the attorney representing Mr. Wang filed a document outlining his sentencing recommendations. In this submission, he argued that due to my client’s cooperation with the prosecution and his relatively smaller role in the scheme, incarceration should not be imposed on him.

Wang, who admitted guilt for fraud and conspiracy following FTX’s bankruptcy in 2022, will be sentenced on November 20th.

FTX Co-Founder Gary Wang Appeals for No Jail Time

The lawyer for Gary Wang, one of FTX’s co-founders, emphasized his client’s early assistance to federal investigators as a significant factor that could warrant leniency from the court. Graff explained that Wang was among the earliest FTX executives to engage with authorities and disclose information about both FTX and Alameda Research. In the trial, Wang testified, which ultimately resulted in Bankman-Fried’s conviction and 25-year prison sentence.

In the courtroom, I testified that I was instructed to modify FTX’s code for the benefit of Alameda Research, allowing them access to our clients’ assets – a crucial aspect alleged in Sam Bankman-Fried’s case of suspected fraud.

The attorney for one of the FTX co-founders emphasized that his role in the alleged fraud was less extensive compared to other former executives, such as Caroline Ellison, ex-CEO of Alameda Research, and Nishad Singh, the previous head of engineering at FTX. It was pointed out that Wang did not initiate or manage the scheme, and he had no personal involvement in misleading investors with false information.

According to Graff’s writing, Gary didn’t take part when the plan started, wasn’t given information about it, and unlike Bankman-Fried, Ellison, and Singh, he didn’t actively mislead or deceive anyone.

Sentencing Comparisons to Other Executives

Wang’s legal representative contended that imposing a prison term for Wang would result in an “unjustified difference” in sentencing compared to Nishad Singh, who received no jail time after admitting guilt and assisting the authorities. While Singh faced the possibility of spending many years in prison, he was ultimately given credit for time served and three years of supervised release instead.

Ellison, another significant partner, was given a two-year jail term. FTX co-founder Gary Wang argued that Wang’s degree of participation was less than Singh’s, suggesting a non-incarceration sentence for Wang too.

Graff observed that Wang’s situation was unique because he was about to become a father for the first time, just after his sentencing date. His lawyer proposed that keeping him with his family was in line with how the court typically handles other cooperating defendants in similar cases.

In a post, it was stated that Gary aspires above all else to excel as a caring spouse and dad, while also pursuing efforts aimed at helping FTX victims regain their losses,” Graff penned.

Independent of other actions, the U.S. administration is attempting to recover around $13.25 million in political contributions given by FTX leaders like Bankman-Fried and Singh. However, Judge Lewis Kaplan has permitted more time for negotiations, pushing back any agreements with Political Action Committees (PACs) until January 15, 2025.

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2024-11-07 02:40