Gary Wang, co-founder of defunct crypto exchange FTX, has been spared from a prison sentence as prosecutors believe that he should be freed due to his swift compliance with the investigating forces after the incident, which helped them to convict others involved in the crime.
Many FTX allies have pleaded for mercy on the same grounds. Notably, only Wang has been spared as the judge believes his cooperation is quite remarkable.
Wang is Not Going Behind Bars
According to Bloomberg, U.S. District Judge Lewis A. Kaplan noted that Wang has done the right thing for himself and the defunct company by complying swiftly to expose FTX’s deeds on time.
“I’ve never seen anything quite like what happened here. Wang is entitled to a world of credit,” he said.
His prosecutors noted that since Wang played a minimal role in the fraud, he could have easily fought against the charges. Thus, he left them in amazement when he humbly unraveled the FTX code for the investigators, making their work much easier.
Remarkably, using his programming skills, Wang worked hand-in-hand with the forces to the point of developing a software program that would help the U.S. Department of Justice (DOJ) to detect fraudsters and their activities in the American financial market.
$11 Billion Forfeiture
Although he is no longer going to be put behind bars, Wang has to suffer the consequences of his involvement in the fraud partially. Therefore, the court has ordered to forfeit $11 billion, the same amount as other FTX allies.
Notably, he has already given in to the order by agreeing to liquidate his Coinbase and Vanguard accounts and submit the proceeds to the U.S. He is also relinquishing any rights to the seized $600 million, which was initially tied to FTX and its co-founder, Sam Bankman-Fried (SBF).
During the hearing, Wang remorsefully commented, “I profoundly regret my choices. Nothing I do will ever be able to make up for those choices.”
Others Bag Prison Sentences
The court has decided on long prison sentences for many FTX personnel involved in the fraud. SBF has been serving his 25-year prison sentence since March. A former FTX executive, Ryan Salame, began serving a seven-and-a-half-year prison sentence in May.
Meanwhile, the defunct exchange has revealed plans to reimburse its creditors by January 2025.
