Breaking: Gary Wang Spared Prison Time In FTX Fraud Case
Highlights
- Gary Wang just escape prison for cooperating with prosecutors
- He designed a software that helped SBF siphon billions in customers' funds
- Other executives bagged jail terms ranging from 2 to 25 years
Gary Wang, a former top executive at the now defunct FTX Derivatives Exchange will not face jail term in the trading platforms fraud case. In a rare form of leniency, Judge Lewis Kaplan of the US District Court ruled in Federal Court in Manhattan.
Gary Wang Escape FTX Wrath
Prior to this sentencing hearing, Wang pleaded guilty to his role in the FTX bankruptcy. Despite writing the code that created the backdoor that permitted Sam Bankman-Fried (SBF) steal about $8 billion in customer funds, Judge Kaplan lean on Prosecutors who insisted that Wang did not spend a dime of customers’ money.
SAM BANKMAN-FRIED’S FORMER DEPUTY GARY WANG SPARED PRISON TIME BY U.S. JUDGE OVER HIS ROLE IN FTX CRYPTO FRAUD
— *Walter Bloomberg (@DeItaone) November 20, 2024
Also, Ilan Graff, Gary Wang’s lawyer appealed to Judge Kaplan to spare him jail term for his cooperation with prosecutors. Drawing on this support, Prosecutors put in good word for him. They noted that he had previously built a software that is helping the US government fight fraud in the stock market.
The plead to avoid jail term also hinges on his ongoing work to design a software that can help detect related fraud in the crypto industry. As the prosecutors argued on his behalf, he would get the time to complete this work if spared jail term.
Notably, the persuasion of Judge Kaplan also hinges on the dependency of his young family on him.
Fate of FTX and Other Former Executives
While Gary Wang might feel lucky to escape jail term, he is not the only one. This ruling aligns with that of Nishad Singh, another top FTX insider whom Judge Lewis Kaplan also spared jail term last month.
However, SBF, Caroline Ellison and Ryan Salame did not bagged different prison terms. Judge Kaplan handed SBF a 25-year jail term, however, he has chosen to appeal the ruling. Ryan Salame started his 7.5 years term weeks ago while Caroline Ellison will serve a 2-year penance.
Meanwhile, FTX Derivatives Exchange is in the last stages of its bankruptcy proceedings as it has secured approval to repay creditors. In the firm’s last bid to recoup mismanaged funds, it has sued Anthony Scaramucci and SkyBridge Capital for overbloated investments. The company hope to recoup about $63 million through this lawuit.
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