Gary Wang, the former chief technology officer at FTX, has requested to serve no prison time for his involvement in the crypto exchange’s 2022 implosion. Wang, who pleaded guilty to four criminal counts in December 2022, is set to be sentenced on Nov. 20, becoming the fourth FTX employee to face sentencing.
Despite the charges carrying a maximum combined sentence of 50 years in prison, the sentences handed down to Wang’s former colleagues may provide an indication of how Judge Lewis Kaplan of the Southern District of New York (SDNY) will sentence Wang. Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years in prison after pleading not guilty to seven fraud and conspiracy charges. Ryan Salame, the former CEO of FTX Digital Markets, received a 7.5-year sentence, and Caroline Ellison, the former CEO of Alameda Research, was sentenced to 2 years in prison. Nishad Singh, the former director of engineering, was spared jail time after cooperating with prosecutors.
In a sentencing memo submitted to the court, Wang’s lawyers argued that he was less involved in Bankman-Fried’s schemes and reaped fewer financial rewards compared to his colleagues. They highlighted Wang’s limited role in the offense, late awareness of the situation, and cooperation with prosecutors as factors that should be considered in his sentencing.
Wang’s lawyers emphasized that his primary role at FTX was to write code, including the creation of a “backdoor” that allowed Alameda to withdraw customer funds from FTX. They stated that Wang was unaware of how Bankman-Fried would exploit the code to steal customer funds.
Furthermore, Wang’s lawyers mentioned that their client did not seek additional compensation beyond his annual salary, and when given a loan by Bankman-Fried, he used a portion of it to help his then-fiancee purchase a house. The remaining amount of the loan was still in Wang’s FTX account at the time of the exchange’s collapse.
After the FTX collapse, Wang has been living with his mother and working as a software engineer at a 3D imaging company. He recently married his fiancee and is expecting their first child. Wang’s lawyers portrayed him as someone uninterested in fame or wealth, highlighting that he continued to live a modest lifestyle even during FTX’s operation.
As Wang awaits his sentencing on Nov. 20, his lawyers are hopeful that his cooperation, limited involvement, and personal circumstances will be taken into consideration by the court. Wang’s case reflects the ongoing legal repercussions involving FTX employees following the exchange’s downfall.
