FTX co-founder Gary Wang is assisting the U.S. government in developing software to enhance oversight and combat fraud, according to court documents. Wang’s defense revealed his involvement in two projects: one aimed at detecting potential fraudulent schemes in public markets and another focused on identifying illegal activities on cryptocurrency trading platforms.

These developments surfaced ahead of Wang’s final sentencing hearing, scheduled for November 20.

“Gary deeply regrets his actions and has taken significant steps to assist the government and others representing the interests of FTX victims. For these reasons, we respectfully ask the court to impose a fair sentence,” stated his defense team.

Wang’s attorneys emphasized that his cooperation extends beyond technical development, including providing “critical testimony” that was instrumental in prosecuting former FTX CEO Sam Bankman-Fried. Wang disclosed information about the backdoor for Alameda Research and the use of random generation for the platform’s insurance fund volumes. His defense asserts that Wang has played a pivotal role in explaining FTX’s technical operations to investigators, aiding regulators in understanding vulnerabilities in the cryptocurrency market.

It remains uncertain whether these factors will allow Wang to avoid a prison sentence.

The Fate of Caroline Ellison

On November 7, former Alameda CEO Caroline Ellison began serving her prison sentence at the Federal Correctional Institution in Danbury, Connecticut, as reported by The Block. In September, she was sentenced to two years in prison and ordered to forfeit $11 billion for fraud and money laundering.

Like Wang, Ellison cooperated with authorities and provided testimony against FTX founder Sam Bankman-Fried.

In November 2023, a jury found Bankman-Fried guilty on all charges, and in March 2024, he was sentenced to 25 years in prison. His legal team has since filed an appeal.

Additionally, former head of FTX’s Bahamian division Ryan Salame was sentenced to 7.5 years in prison but was allowed to delay the start of his sentence due to a dog bite incident.