Gary Wang sentenced to time served in FTX fraud case

FTX (CRYPTO:FTT) co-founder Zixiao “Gary” Wang has been sentenced to time served, three years of probation, and forfeiture of assets for his role in the 2022 collapse of the cryptocurrency exchange.

The sentencing, delivered on November 20 by U.S. District Judge Lewis Kaplan in New York, marks the conclusion of prosecutions for key FTX executives.

Wang, who pleaded guilty to fraud charges in December 2022, cooperated extensively with authorities.

Judge Kaplan noted Wang’s significant assistance in the investigation as a major factor in the sentencing decision.

"I took the easy path, the cowardly path, instead of doing the right thing. I plan to spend the rest of my life doing everything I can to make amends," expressed Gary Wang, co-founder of FTX, during his court appearance.

This case represents the fifth sentencing of FTX executives involved in the exchange's collapse.

Former Alameda Research CEO Caroline Ellison, who admitted to misappropriating $8 billion with Wang and co-founder Sam Bankman-Fried, received a two-year sentence.

Bankman-Fried, convicted of fraud, was sentenced to 25 years in prison, while other executives, including former FTX Digital Markets co-CEO Ryan Salame and FTX engineering director Nishad Singh, received 7.5 years and time served with probation, respectively.

Judge Kaplan described the FTX collapse as an unprecedented case, emphasising that Wang’s cooperation earned him significant leniency.

With the sentencing phase concluded, attention shifts to the appeals process for Bankman-Fried.

His legal team, claiming unfair proceedings, filed an initial appeal in April and renewed efforts in September.

Wang’s sentencing underscores the value of cooperation in high-profile fraud investigations and highlights the ongoing impact of the FTX collapse on the cryptocurrency industry.

At the time of reporting, the FTX Token (FTT) price was $2.00.