by Brian A. Jacobs and A. Dennis Dillon
From left to right: Brian Jacobs and A. Dennis Dillon (photos courtesy of authors)
Cooperating witness Gary Wang provided crucial testimony in the prosecution of Sam Bankman-Fried, by describing (among other things) how at Bankman-Fried’s direction he had coded a means for Alameda Research—the FTX-affiliated hedge fund—to withdraw unlimited funds from FTX. Mr. Wang’s credibility was enhanced by the fact he already had pled guilty to four felony counts, including conspiracy to commit wire fraud and securities fraud, and had accepted a theoretical maximum sentence of decades in prison. It is possible, but by no means certain, given Mr. Wang’s cooperation, that he will receive little or no prison time. Even so, he will carry the burden of a felony conviction forever. Had the FTX case (and his confession) come just a year later, however, might the outcome have been different?