FTX Co-Founder Gary Wang Avoids Prison Time, Sentenced to 'Time Served' After Cooperation in FTX Fraud Case

Nov 20, 2024, 04:05 PM

Gary Wang, co-founder of the now-defunct cryptocurrency exchange FTX, was sentenced to 'time served' on November 20, 2024, avoiding prison time for his role in the multibillion-dollar fraud at the exchange. Wang had pleaded guilty to fraud charges in December 2022 following the collapse of FTX. His extensive cooperation with U.S. prosecutors, including testifying at Sam Bankman-Fried's criminal trial, was credited by both prosecutors and the judge. Wang was instrumental in creating the software code that allowed Alameda Research, another company linked to FTX, to divert customer funds through programming 'back doors' that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange. This cooperation led to a lenient sentence, with Wang receiving no additional jail time despite his significant role in one of the largest financial frauds in U.S. history, involving the theft of approximately $8 billion from customers.