In a novel development in the FTX lawsuit, Gary Wang, the co-founder of the defunct exchange, has requested the court to avoid his prison sentence. Being a key witness for FTX founder Sam Bankman-Fried’s fraud trial, Wang pleaded for a non-custodial sentence. In a sentencing memo filed in a Manhattan district court on November 6, his lawyer, Ilan Graff, highlighted his “most limited role” in the $10 billion FTX case.
In November 2022, the then-prominent FTX exchange fell, severely impacting the entire crypto industry. After one year, its founder, SBF, was found guilty of seven charges, including fraud and conspiracy. Soon, ex-FTX executive Nishad Singh and FTX’s sister firm Alameda Research’s former CEO Caroline Ellison were convicted of being involved in the fraud scheme. Meanwhile, Wang reached a plea agreement with prosecutors on charges of fraud and criminal conspiracy and is scheduled for prison sentence on November 20.
Wang’s lawyer urged the court to consider his request for the defendant’s non-custodial sentence. Graff pointed out that Wang’s role in the scheme was minimal compared to the other crime partners. He argued that Bankman-Fried forced him to modify FTX’s code to help allow Alameda Research to accumulate the exchange’s customer funds.
Further, the lawyer asserted that Wang was unaware of the conspiration and the execution of the scheme. He stated, “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.” He added that it would “create an unwarranted sentencing disparity” if Wang is sentenced to jail time while Singh was freed of additional imprisonment. The lawyer also included statements regarding the potential hardships of Wang’s 9-month pregnant wife if he is imprisoned.
S&C Lawsuit Dismissed: How Will It Impact FTX Creditors?However, the defendant’s fate remains unclear as the court’s decision is unpredictable. The judge may opt for a stringent sentence, similar to those of Bankman-Fried and Ellison, or show leniency, as seen in Singh’s sentencing.
