Outside Source
Three of the five individuals indicted in the FTX case have been sent to prison, while one was given time served.
Follow up
On Nov. 20, FTX co-founder Zixiao “Gary” Wang will stand before a judge in a New York courtroom and learn whether he will spend years of his life in prison or be allowed to remain free after pleading guilty to fraud charges.
Wang, one of five former FTX and Alameda Research executives named in an indictment related to the collapse of the cryptocurrency exchange and the misuse of user funds, is expected to be sentenced in the United States District Court for the Southern District of New York on Nov. 20. He pleaded guilty to wire fraud, commodities fraud, and securities fraud and testified at Sam “SBF” Bankman-Fried’s criminal trial, which may have contributed to the former FTX CEO being sentenced to 25 years in prison.
The 31-year-old could be the last individual criminally involved in the FTX case to appear in court after the sentencing of Bankman-Fried, former Alameda CEO Caroline Ellison, and former FTX Digital Markets co-CEO Ryan Salame, all of whom received prison time. However, a judge sentenced Nishad Singh, the crypto exchange’s former engineering director, to time served in October.
It’s unclear whether Wang could receive a lenient sentence from Judge Lewis Kaplan, who oversaw all the criminal cases. His lawyers argued in a sentencing recommendation that Wang “had the most limited role” in defrauding FTX users. Prosecutors also suggested the FTX co-founder could be free to develop a “tool for detection of potential illegal activity in cryptocurrency markets” if sentenced to time served.
Gary Wang knew Sam Bankman-Fried as a teenager
Wang met Bankman-Fried at a summer math camp while in high school, with the two becoming roommates at the Massachusetts Institute of Technology (MIT). Though Wang worked with Google for three years after graduation, SBF convinced him to leave the company and sign onto Alameda with him, later helping found FTX in 2019.
The FTX co-founder met his partner, Yiling “Cheryl” Chen, while working at the crypto exchange, marrying her in 2023. Many of the letters written in support of a lenient sentence for Wang described him as a “quiet” man with a “simple” lifestyle.”
“Gary has acknowledged his mistakes and deeply regrets his participation, and I have known him to be someone who takes full responsibility for his actions,” said Adam Jin, a former FTX employee, in a letter filed on Nov. 18.
Related: Bitfinex money launderer ‘Razzlekhan’ sentenced to 18 months in prison
After FTX collapsed and filed for bankruptcy in November 2022, Wang and Ellison were some of the first individuals connected to the exchange to plead guilty to criminal charges and cooperate with authorities. Singh followed with a guilty plea in February 2023.
The charges to which Wang pleaded guilty could potentially send the FTX co-founder to federal prison for years. Ellison received two years for her role in the FTX collapse, while Salame — who was also facing campaign finance charges — received seven-and-a-half years.
FTX users are expected to begin receiving reimbursement for funds locked in their accounts after a bankruptcy court signed off on a reorganization plan in October. Bankman-Fried, who is currently housed in a New York prison, has appealed his conviction and sentence.
Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame
This article first appeared at Cointelegraph.com News
