Bankman-Fried lieutenant builds fraud detection device for prosecutors

By Luc Cohen

NEW YORK (Reuters) – The previous FTX govt who wrote pc code that enabled his imprisoned former boss Sam Bankman-Fried to steal billions of {dollars} from cryptocurrency prospects has constructed software program to assist the U.S. authorities uncover fraud within the inventory market.

Federal prosecutors made the disclosure in a Wednesday courtroom submitting searching for leniency for Gary Wang, FTX’s former chief expertise officer, at his scheduled Nov. 20 sentencing earlier than U.S. District Decide Lewis (JO:) Kaplan in Manhattan.

Wang can also be constructing a device to assist spot crime on cryptocurrency exchanges, in line with the submitting.

“The device has enough potential worth to the federal government,” the U.S. Lawyer’s workplace in Manhattan mentioned. “Wang’s willingness to make use of his expertise proactively, to assist detect different felony exercise in monetary markets, distinguishes his cooperation.”

Bankman-Fried, 32, is serving a 25-year jail sentence imposed by Kaplan after a jury final 12 months discovered him responsible of stealing $8 billion from prospects to prop up his hedge fund Alameda Analysis. He’s interesting his conviction and sentence.

Wang, in his early 30s, would be the final member of Bankman-Fried’s former inside circle to be sentenced by Kaplan following FTX’s November 2022 collapse.

Bankman-Fried’s former girlfriend and Alameda chief govt Caroline Ellison was sentenced to 2 years behind bars in September. Nishad Singh, one other FTX pc programmer who pleaded responsible, was spared jail time final month.

At Bankman-Fried’s trial, Wang testified that his former boss instructed him to regulate FTX’s software program code to offer Alameda particular privileges, enabling the fund to secretly withdraw billions of {dollars} from the trade.

Final week, Wang’s lawyer Ilan Graff implored Kaplan to spare his consumer jail time due to his help to prosecutors.

Many particulars about Wang’s software program instruments have been redacted from the courtroom submitting as a result of disclosing them would undermine their effectiveness, prosecutors wrote.