Ex-FTX CTO Gary Wang Aids US Fraud Fight, Awaits Sentencing
Former FTX CTO Gary Wang partners with the US government on anti-fraud tools for crypto oversight, hoping his cooperation influences his upcoming sentence.
Gary Wang, co-founder and former CTO of FTX, is now collaborating with the US government to create anti-fraud software tools for monitoring cryptocurrency activities. This partnership follows his 2022 plea deal with the Department of Justice (DoJ), aiming to improve transparency and combat fraud in the crypto market. Wang’s contributions include two key tools—one for detecting fraud in public markets and another for spotting illegal activities on crypto exchanges.
Wang’s efforts to assist in fraud prevention highlight his attempt to atone for his role in FTX’s collapse, as he awaits sentencing on November 20. His lawyers argue that his deep remorse and extensive cooperation, including vital testimony against former FTX CEO Sam Bankman-Fried (SBF), should be considered in his sentencing. Wang revealed during the trial that SBF had allowed Alameda Research, his hedge fund, unrestricted access to FTX customer funds through a hidden “back door,” enabling millions in unauthorized transfers. This testimony was crucial in exposing the misuse of funds at FTX, and Wang’s collaboration has helped investigators understand FTX’s technical operations.
Despite his cooperation, it remains unclear whether Wang will avoid jail. His case draws comparisons to Caroline Ellison, the former Alameda Research CEO, who provided testimony against SBF but received a two-year sentence. This suggests that cooperation, though important, doesn’t necessarily guarantee leniency in high-profile cases like FTX.
Meanwhile, steps to compensate FTX victims are progressing. A US court recently approved a plan to distribute $14.7 billion to $16.5 billion to creditors, offering financial relief to those affected by FTX's collapse. However, some creditors are frustrated by delays in claim processing, particularly for larger claims that may take longer to resolve. Victims also worry that payouts based on FTX-era values could undervalue their assets, especially given recent increases in cryptocurrency prices since the exchange’s collapse.
As Wang’s sentencing nears, his role in the government’s anti-fraud initiative and his assistance in the FTX case continue to shape his legal outlook. His attorneys hope his cooperation and remorse will lead to a lenient sentence, but the final decision rests with the court.
