In the aftermath of the collapse of the bankrupt cryptocurrency exchange FTX, the U.S. prosecutors wasted no time in bringing charges against its former Chief Executive, Sam Bankman-Fried. The key to their expeditious action lay in securing the cooperation of the exchange’s chief software engineer, Gary Wang, revealed Assistant U.S. Attorney Thane Rehn during a recent discussion hosted by law firm Wilson Sonsini.
Rehn emphasized that Wang’s assistance proved instrumental in unraveling how Bankman-Fried allegedly siphoned off a staggering $8 billion in customer funds. Without Wang’s cooperation, Rehn speculated, deciphering the complex software intricacies might have taken weeks or even months for the investigators.
Bankman-Fried, 32, found guilty last November on seven counts of fraud and conspiracy, now faces a 25-year prison sentence. Despite his plans to appeal the conviction, he admitted to managerial errors but denied any intent to misappropriate funds. His arrest in December 2022, barely a month following FTX’s demise, marked the inception of a legal battle that shook the cryptocurrency world.
The government’s reliance on three key witnesses—Wang, former FTX engineering chief Nishad Singh, and Caroline Ellison, ex-CEO of Bankman-Fried’s Alameda Research hedge fund—underscored the significance of insider cooperation. Each pleaded guilty to fraud and provided damning testimonies during Bankman-Fried’s month-long trial.
Wang’s testimony revealed Bankman-Fried’s alleged instructions to manipulate FTX’s software, facilitating Alameda’s withdrawal of unlimited funds from the exchange. Crucially, Wang swiftly presented incriminating code from his laptop following FTX’s collapse, expediting the investigative process.
“This case moved at lightning speed,” remarked U.S. Attorney Damian Williams, reflecting on Bankman-Fried’s conviction, hinting at the remarkable pace facilitated by the cooperating witnesses.
As Bankman-Fried’s fate hangs in the balance pending appeal, Wang and his cohorts hope for leniency in their own sentencing. Wang, particularly, expressed a desire to evade imprisonment through his attorney, Ilan Graff, who refrained from commenting on the matter.
In a realm rife with financial intrigue and legal entanglements, the swift cooperation of a coder emerged as a pivotal force in the relentless pursuit of justice.
Luc Cohen’s reporting in New York, edited by Bill Berkrot, contributed to this article.
