Alameda CEO Begins Sentence as FTX Co-founder Aids Government Efforts

Gary Wang, co-founder of the defunct FTX, is assisting the U.S. government in developing software for oversight and fraud prevention. This information emerged from court documents.

Wang’s defense disclosed his involvement in two projects: one aimed at detecting potential scams in public markets, and another focused on identifying illegal activities on cryptocurrency trading platforms.

These revelations come as the final hearing in the case of the co-founder of the bankrupt exchange approaches. Sentencing is scheduled for November 20.

“Gary is deeply remorseful and has taken extraordinary steps to assist the government and others working on behalf of FTX victims. For these reasons, we respectfully request the court to impose an appropriate sentence,” the statement reads.

According to his lawyers, Wang’s cooperation extends beyond technology development. It includes “critically important testimony” that contributed to the indictment of former FTX CEO Sam Bankman-Fried. He provided information about a “backdoor” for Alameda and the use of random generation for the trading platform’s insurance fund volumes.

The defense claims Wang is invaluable in explaining the technical aspects of FTX operations to investigators. Additionally, his ongoing work with law enforcement has aided regulatory understanding of cryptocurrency market vulnerabilities.

However, it remains uncertain whether these factors will spare him from a prison sentence.

The Fate of an Accomplice

On November 7, former Alameda CEO Caroline Ellison began serving her prison sentence at the Federal Correctional Institution in Danbury, Connecticut, reports The Block.

In September, the court sentenced Ellison to two years in prison and the forfeiture of $11 billion on charges of fraud and money laundering.

She, along with Wang, cooperated with the investigation and testified against the FTX founder.

In November 2023, a jury found Bankman-Fried guilty on all charges. In March 2024, he was sentenced to 25 years in prison. His lawyers appealed the court’s decision.

Former head of FTX’s Bahamian division, Ryan Salame, was sentenced to 7.5 years in prison, but was granted a delay in starting his sentence due to a dog bite.