Former FTX CTO Gary Wang is avoiding prison time by cooperating with the U.S. government. This news comes from a report by Reuters.
Wang, a computer programmer, unintentionally created the code that allowed Sam Bankman-Fried, the former CEO of FTX, to steal billions from customers.
Judge Lewis A. Kaplan announced that Wang won't go to prison. Why? He served as a key witness against Bankman-Fried during the trial. Plus, he developed tools to help the government uncover fraud.
Wang’s tools are designed for monitoring both stock and crypto markets. He’s working on a new software tool to detect financial fraud in public markets. At the direction of prosecutors, he’s also developing a separate tool to identify illegal activities on crypto exchanges.
Bankman-Fried siphoned billions of dollars in customer funds from FTX to Alameda Research, a sister company. He used this money for risky trades and arbitrage. He was convicted of defrauding investors and mishandling customer funds, receiving a 25-year prison sentence. His ex-girlfriend and former Alameda CEO, Caroline Ellison, was recently sentenced to two years for her role in the scandal.
Wang testified against Bankman-Fried in 2023. He revealed that he was instructed to create the code that allowed his boss to secretly move funds from FTX to Alameda.