FTX Co-Founder Gary Wang Sentenced to Probation and Time Served
Cooperation earns Wang a break
FTX co-founder Zixiao “Gary” Wang was sentenced to time served, forfeiture of assets, and three years of probation on November 20 in a U.S. district court in New York. This ruling marked the conclusion of legal proceedings against the top executives implicated in the cryptocurrency exchange’s dramatic 2022 collapse. Wang became the fifth and final executive to be sentenced.
Wang, alongside former Alameda Research CEO Caroline Ellison, pleaded guilty to fraud charges in December 2022. Ellison admitted to collaborating with FTX co-founder Sam Bankman-Fried in a scheme to misappropriate $8 billion. She received a two-year sentence, while Bankman-Fried was handed 25 years in prison. Ryan Salame, a former co-CEO of FTX Digital Markets, was sentenced to 7.5 years, and former engineering director Nishad Singh also received time served with probation.
Judge Lewis Kaplan, who presided over all five cases, noted Wang’s cooperation as pivotal in his relatively lenient sentence. Kaplan acknowledged Wang’s significant assistance in unraveling the FTX fraud, stating the cooperation was “unlike anything” he had seen before. Similarly, Singh’s mitigating sentence reflected his willingness to work with authorities.
In court, Wang expressed remorse, admitting to taking “the cowardly path” and vowing to make amends for the rest of his life.
With these sentences finalized, attention turns to Sam Bankman-Fried’s ongoing legal battles. His legal team has filed appeals and motions for a retrial, claiming he was not tried fairly. As the legal saga unfolds, the cryptocurrency world awaits further developments in what remains one of the industry’s most significant scandals.