FTX Co-Founder Gary Wang Walks Free After Testifying on SBF

Gary Wang and Sam Bankman-Fried during the early days of FTX. Source: Financial Times

The FTX co-founder created the software that operated the companys widely used crypto trading platform. Wang wrote the code that created a backdoor on FTX, allowing Alameda unlimited access to its customer funds. On his road back from the scandal, he later used his technical skills to assist authorities in the future.

“Gary has worked with the government to design and build a new software tool to detect potential financial fraud in public markets,” Wangs lawyers wrote in a letter.

However, not everyone appreciated Wang‘s attempt to rebuild his reputation after the incident. Some argued his cooperation should not act as a “get out of jail free” card. Wang’s help in exposing the fraud was significant but still drew criticism.

Critics believe his leniency sets a troubling precedent for future cases. Dennis Kelleher, CEO of Better Markets, published a memo addressing Wangs legal defense.

“While Wang appears to have cooperated extensively and continues to cooperate in meaningful and important ways, no criminal should be handed a ‘get-out-of-jail-free’ card. That would create perverse incentives causing future criminals to continue their criminal activities hoping they won‘t get caught but also planning, if they do get caught, to race to the prosecutor’s office to be the first one in the door so that he or she can get the lightest sentence, if any at all,” the executive argued.

As the FTX collapse fades, the legal and ethical consequences of its players actions remain a topic of debate. It will be remembered as one of the largest financial frauds in US history.

At the same time, the broader crypto industry struggles to recover its reputation and implement stronger protections against similar abuses.