FTX co-founder won’t serve time in prison, judge rules

Former top FTX executive Gary Wang was sentenced to time served with three years of supervised release Wednesday for his role in the $8 billion fraud that preceded the exchange’s collapse. Wang is the final cooperating member of FTX founder Sam Bankman-Fried’s inner circle to be sentenced.

Wang, co-founder and former chief technology officer of FTX, served as a government witness in Bankman-Fried’s criminal trial last fall. He was the first co-conspirator to work with prosecutors and pleaded guilty to four counts of fraud and conspiracy in December 2022.

“You immediately did the right thing,” Judge Lewis Kaplan said Wednesday, addressing Wang. “You are entitled to a world of credit.”

While Wang does bear some responsibility for his role in the crimes, Kaplan added, his culpability is minimal compared to other defendants. “Life is a balance,” and cooperation should be rewarded, Kaplan said.

Wang’s parents and wife, who is expecting their first child, were present in the courtroom Wednesday.