Zixiao “Gary” Wang, co-founder of FTX exchange, has been handed a “time served” sentence in addition to forfeiting his assets, following a court appearance in New York on November 20. This draws to a close the series of sentences given to executives of the collapsed FTX exchange that happened in 2022 and the subsequent fraud allegations.
In December 2022, Wang pled guilty to fraud, an admission that was echoed by the former CEO of Alameda Research, Caroline Ellison. Ellison, who confessed to colluding with FTX co-founder Sam Bankman-Fried to embezzle $8 billion, was handed a two-year sentence.
Judge Lewis Kaplan, responsible for presiding over all five cases, meted sentences to three other executives; Bankman-Fried was given 25 years, former FTX Digital Markets co-CEO Ryan Salame received 7.5 years, and former FTX engineering director Nishad Singh was given an equivalent “time served” sentence owing to his cooperation in the case.
Gary Wang’s sentence follows a similar pattern to Singh’s, entailing time already served, a three-year probation period, and forfeiture of assets surreptitiously acquired. Judge Kaplan made it known that Wang’s readiness to assist authorities contributed to his more lenient sentence.
During the court proceedings, Wang expressed regret for his actions. “I took the easy path, the cowardly path, instead of doing the right thing. I will spend the rest of my life trying to make amends,” he stated.
Now that the final sentences have been issued, attention shifts to the ongoing legal challenge involving Sam Bankman-Fried and his legal representatives, who are currently seeking his release via the appeal process. An initial appeal was filed two weeks post-sentencing in April, followed by a request for a retrial under a different judge in September, on the basis of alleged unfair treatment during Bankman-Fried’s initial trial.