FTX co-founder Gary Wang asks judge for no prison time

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As an analyst with years of experience under my belt, I find myself intrigued by the case of Gary Wang, a co-founder of FTX who is now pleading for leniency in sentencing. The parallels between his situation and that of Nishad Singh, who received no prison time, are undeniable.

Gary Wang, college companion and co-founder of FTX alongside Sam Bankman-Fried, has petitioned a federal judge to avoid incarceration just days following the decision not to imprison FTX executive Nishad Singh.

As a researcher reporting on this matter, I am relaying that Gary Wang, one of the co-founders of FTX, is petitioning the federal judge for leniency in his sentencing, mirroring the same outcome as Nishad Singh, FTX’s former engineering chief, during his trial.

In a memorandum submitted to the Manhattan federal court, defense attorney Ilan Graff contended that imposing a prison term on Wang, when Singh’s sentence was lenient, could result in an unjustified difference in sentencing.

Graff stated that Wang’s role in the alleged fraud was more indirect than the other FTX executives who are testifying against ex-FTX CEO Sam Bankman-Fried during trial, such as Caroline Ellison (former Alameda CEO) and Nishad Singh (former FTX engineering executive).

Graff stated that at the outset, Gary had no knowledge of the plan, was not privy to its specific details, and unlike Bankman-Fried, Ellison, and Singh, he did not engage in any actions aimed at deceiving others.

Similar to Ellison and Singh, Wang stood as a witness against his long-standing friend, Sam Bankman-Fried. In court, he informed the jury that he had been directed to modify the software of FTX to permit Alameda Research to tap into client funds.

As an analyst, I noted in the memo that Mr. Wang had shared he was anticipating the arrival of his newborn son only a few days following his planned sentencing on November 20th.

As per the memo, Wang has been employed at an imaging technology firm since February 2023. At present, he aspires to be a devoted husband and father while also continuing his efforts with the Government and other concerned parties to aid in the recovery of FTX victims and minimize the likelihood of future fraud incidents.

In his memorandum, Wang stated that he became aware of the criminal activities occurring backstage only after they had progressed substantially. He alleged that he had been misled and deceived about these matters by Sam Bankman-Fried.

Wang is one of Bankman’s most trusted and long-standing associates. They initially became acquainted at a math summer camp during their teenage years, and later shared dormitory space at the Massachusetts Institute of Technology as members of the same fraternity.

Previously employed by Google, Wang collaborated with Bankman-Fried at Alameda Research. In 2019, they teamed up to establish FTX together. While Bankman-Fried served as the CEO, Wang functioned as the chief technology officer within the company.

Following FTX’s bankruptcy, Wang emerged as one of the early executives who held talks with federal investigators about a potential agreement. It turned out that Bankman-Fried had allegedly swindled customers and investors of up to $10 billion. As a result, he was imprisoned for 25 years due to his wrongdoings.

Despite the initial plea from her lawyers for no prison time, similar to Singh and Wang, Caroline Ellison was instead given a two-year sentence in prison.

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2024-11-07 11:14