14-11-2024 (NEW YORK) The former Chief Technology Officer of collapsed cryptocurrency exchange FTX, who helped enable a multi-billion dollar fraud, has developed sophisticated software to assist US authorities in detecting stock market manipulation, prosecutors revealed yesterday.
Gary Wang, awaiting sentencing on 20 November for his role in the FTX scandal, has created detection tools that prosecutors describe as having “sufficient potential value” to law enforcement efforts. The disclosure came in a Manhattan federal court filing seeking leniency in Wang’s sentencing before U.S. District Judge Lewis Kaplan.
The filing indicates that Wang is also developing software specifically designed to identify criminal activity on cryptocurrency exchanges, though specific details remain classified to maintain the tools’ effectiveness.
Wang’s cooperation with authorities marks a striking turn from his previous role at FTX, where he admitted to writing code that enabled founder Sam Bankman-Fried to misappropriate $8 billion in customer funds to support his hedge fund, Alameda Research. Bankman-Fried is currently serving a 25-year prison sentence following his conviction last year, though he is appealing both the verdict and sentence.
The sentencing of Wang, who is in his early thirties, represents the final chapter in the prosecution of Bankman-Fried’s inner circle. His cooperation contrasts with that of his former boss, as highlighted by Manhattan prosecutors who noted that Wang’s “willingness to use his skills proactively” sets his assistance apart.
Wang’s testimony during Bankman-Fried’s trial proved crucial, revealing how he modified FTX’s software at his boss’s direction to grant Alameda Research special privileges, facilitating the unauthorized withdrawal of billions in customer funds.
The case has seen varying sentences for key figures. Caroline Ellison, former Alameda CEO and Bankman-Fried’s ex-girlfriend, received a two-year prison term in September, while Nishad Singh, another FTX programmer who pleaded guilty, avoided imprisonment in a recent ruling.
Wang’s legal team, led by attorney Ilan Graff, has petitioned Judge Kaplan for a non-custodial sentence, citing their client’s extensive cooperation with authorities and his efforts to assist in preventing future financial crimes.
