Former FTX Executive Gary Wang is urging the court to pardon him for alleged involvement in the platform’s implosion so he can avoid jail
As the sentencing date for former FTX Executive Gary Wang approaches, his legal team argues passionately in court that prison is not where he belongs. In court, Gary’s lawyers emphasize his cooperation, lack of awareness of key fraudulent activities, and his unique personal circumstances.
Wang’s Role in FTX: A Programmer, Not a Mastermind
Gary Wang, FTX’s software engineer and co-founder, had admitted to writing parts of the code for the defunct firm. Sam Bankman-Fried misused these codes to benefit Alameda Research financially, FTX’s sister firm.
However, Wang’s lawyers argued that his role was purely technical. They argued that Wang was not aware of Bankman-Fried’s plans to exploit the code for fraudulent financial gain. Wang, they asserted, was left in the dark until the damage was done.
According to a recent sentencing report, Wang was unaware of the magnitude of FTX’s fraudulent activities, particularly regarding Alameda Research’s secret use of customer funds. The scheme was already deep in motion when he learned of the misuse.
His defense insisted that he never intended or knowingly contributed to defrauding customers. His cooperation with authorities signals his commitment to righting the wrongs.
Gary Wang is not only awaiting sentencing but also the birth of his first child with his wife, Cheryl Chen. Chen, who is currently nine months pregnant and in the process of gaining U.S. citizenship, depends solely on Wang for financial support.
Wang’s legal team argued that a prison sentence would destabilize his young family at a critical time. A prison time for the former FTX insider would leave Chen and their soon-to-be-born child without a primary breadwinner. The defense highlighted this hardship, calling for leniency to allow Wang to continue supporting his family.
A History of Trust and Friendship Misplaced
Wang’s relationship with Sam Bankman-Fried dates back to high school, meeting at a math camp and bonding over their shared intellectual interests. The defense portrays Wang as kind-hearted but overly trusting, a quality that Bankman-Fried allegedly exploited to carry out the fraud.
This deep-rooted trust, they argue, made Wang vulnerable to following Bankman-Fried’s lead without fully understanding the implications of his actions. He became a pawn in a larger criminal scheme.
Wang’s commitment to cooperation stands out in his defense’s appeal. Since pleading guilty to fraud-related charges in December 2022, he has worked extensively with authorities. He shared crucial information about Bankman-Fried’s operations.
In his testimony, Wang disclosed that Bankman-Fried secretly gave Alameda Research special privileges on FTX accounts, excluding Wang’s awareness. Wang’s defense claimed this transparency demonstrates his lack of intent, suggesting it should contribute toward a more lenient sentence.
The defense pointed to other former FTX and Alameda executives, like Nishad Singh and Caroline Ellison. These executives had received lighter sentences or supervised release after cooperating with prosecutors. In comparison, Wang’s contributions to the case and his cooperation with authorities similarly warrant a fairer consideration, his lawyer argued.
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