Former FTX CTO Gary Wang is reportedly collaborating with the U.S. government on a suite of anti-fraud software tools intended to bolster cryptocurrency oversight, as part of a 2022 plea deal with the Department of Justice (DoJ). This effort could influence his sentencing, currently scheduled for November 20, as Wang attempts to demonstrate remorse and avoid prison time.
Wang’s legal team recently disclosed in court filings that he has developed two specific tools: one focused on identifying potential fraud in public markets and another designed to track illegal activities on cryptocurrency trading platforms. This initiative aligns with Wang’s attempts to make amends following FTX’s collapse, which affected thousands of customers and led to a federal investigation into the exchange’s financial practices.
“Gary is profoundly remorseful and has taken extraordinary steps to assist the government and others working on behalf of FTX victims,” his attorneys said. “For these reasons, we respectfully request that the court impose a time-served sentence.”
His cooperation includes both technological contributions and critical testimony against Sam Bankman-Fried (SBF), FTX’s former CEO. In court, Wang revealed that Bankman-Fried allowed his hedge fund, Alameda Research, secret access to FTX customer funds, leading to millions in unauthorized transfers. This testimony played a central role in uncovering systemic misuse of customer assets within FTX, ultimately influencing SBF’s conviction.
Whether Wang’s cooperation will impact his sentencing remains uncertain, however. A recent case involving Caroline Ellison, former Alameda CEO, suggests leniency is not guaranteed in high-profile cases. Despite providing detailed testimony about FTX’s financial misconduct, Ellison received a two-year sentence, indicating courts may weigh individual involvement heavily.
As his sentencing date approaches, Wang’s participation in anti-fraud initiatives and his extensive cooperation with authorities position him as a cooperative defendant. His lawyers emphasize his contributions to aid regulators’ understanding of the crypto market’s technical vulnerabilities, though the final decision lies with the judge, who may assess Wang’s overall role in FTX’s failure alongside his assistance to federal investigators.
