Former FTX Executive Gary Wang Avoids Prison Time After Building Crypto Surveillance Tools for Government: Report

The former chief technology officer of disgraced crypto exchange FTX is dodging prison time by cooperating with the US government.

According to a report from Reuters, Wang – a computer programmer who unwittingly wrote the code that allowed former FTX CEO Sam Bankman-Fried to steal billions of dollars from customers – is being spared prison for his role in the multibillion-dollar downfall of FTX.

Judge Lewis A. Kaplan said that Wang will be avoiding prison time because he served as a key witness against Bankman-Fried during the trial and went on to create tools to help the government uncover fraud.

According to previous reports, Wang’s tools aim to enable surveillance of both the stock and crypto markets.

“In a further, extraordinary step, Gary has worked with the government to design and build a new software tool to detect potential financial fraud in public markets and, at prosecutors’ direction, is currently developing a separate tool focused on identifying illicit activity on crypto exchanges.”

Bankman-Fried was found to be siphoning billions of dollars worth of customer funds from FTX and pouring them into Alameda Research, the crypto exchange’s sister company, as a means of arbitrage trading and making risky bets.

He was convicted of defrauding investors and mishandling customer funds and handed a sentence of 25 years behind bars. His ex-girlfriend and former Alameda CEO Caroline Ellison was recently sentenced to two years behind bars for her role in the debacle.

Wang testified against Bankman-Fried in 2023, saying that he was instructed to create the code that allowed his boss to secretly move funds from FTX to Alameda.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3

The post Former FTX Executive Gary Wang Avoids Prison Time After Building Crypto Surveillance Tools for Government: Report appeared first on The Daily Hodl.