FTX Co-Founder Gary Wang Seeks Leniency Before Sentencing

Gary Wang, co-founder of the defunct cryptocurrency exchange FTX, is appealing for leniency as he awaits sentencing, which is set for November 20 in Manhattan federal court. He aims to avoid prison time by highlighting his cooperation in the fraud case against his former associate, Sam Bankman-Fried (SBF).

Emphasis on Cooperation and Lesser Involvement

In a sentencing memo filed recently, Wang's attorney, Ilan Graff, argued that Wang’s cooperation and relatively minor role in the fraud should warrant a non-custodial sentence. Graff pointed out that Wang’s involvement was less significant compared to other executives who have cooperated with authorities, including Caroline Ellison and Nishad Singh.

“Gary was unaware of the scheme when it started, never informed of its particulars, and unlike Bankman-Fried, Ellison, and Singh, never once took an affirmative step to deceive anyone,” Graff stated.

The memo argues that a prison sentence for Wang would create an "unwarranted sentencing disparity" when compared to the outcomes for Ellison and Singh, who testified against Bankman-Fried.

Personal Circumstances and Future Aspirations

Graff also highlighted Wang's personal circumstances, mentioning that he has been working to rebuild his life since the collapse of FTX. He started a new job at an imaging technology firm in early 2023 and recently married. Wang and his wife are expecting their first child shortly after his scheduled sentencing. His attorney described him as someone who “wants nothing more than to be a good husband and father.”

Wang aims to continue collaborating with authorities to recover funds for FTX victims and to mitigate the risks of future fraud.

Wang’s Guilty Plea and Testimony

In 2022, Wang pleaded guilty to federal charges related to a scheme designed to defraud investors, shortly after FTX’s collapse. As part of his plea deal, he agreed to cooperate with prosecutors. His testimony played a crucial role in the case against Bankman-Fried, where he admitted to facilitating wire fraud by altering FTX’s code to grant Alameda Research unrestricted access to customer funds.

Wang and Bankman-Fried have been close friends since their teenage years, having met at a math camp and later becoming fraternity brothers at MIT. After a brief period at Google, Wang joined Bankman-Fried at Alameda Research, and together they founded FTX in 2019.