#prison

Gary Wang, co-founder and former CTO of FTX, has been sentenced to probation instead of prison time, as reported by Matthew Russell of Inner City Press on X.

Ilya Lichtenstein, who hacked the Bitfinex cryptocurrency exchange and laundered 119,754 BTC (now valued at approximately $10.5 billion), received a five-year prison sentence instead of the potential twenty, thanks to his collaboration with authorities. At the time of the hack, the stolen assets were valued at $71 million.

The U.S. Department of Justice has filed charges against Aleksei Andriunin, the 26-year-old Russian founder of Gotbit, alleging his involvement in a large-scale cryptocurrency market manipulation scheme. According to investigators, Gotbit provided services that artificially boosted trading volumes for tokens of various crypto companies, including some based in the U.S., with the intent to manipulate prices.

Caroline Ellison, the former CEO of Alameda Research and a key witness in the trial of FTX founder Sam Bankman-Fried, has been sentenced to two years in prison, followed by three years of supervised release. During this period, she must cooperate with the U.S. Securities and Exchange Commission (SEC). The court also ordered her to pay an $11 billion fine and forfeit her assets.

Two American politicians who recently visited the detained Binance employee in prison claimed that he is being held in poor conditions.

Attorneys for Ryan Salame, a former top executive of the bankrupt crypto exchange FTX, are seeking a sentence of no more than 18 months in prison. They assert that their client had no involvement in the fraudulent activities orchestrated by former CEO Sam Bankman-Fried.

On April 12th, a former senior security engineer for a major international tech company was sentenced to three years in prison. His crimes involved the hacking of two decentralized cryptoexchanges, as well as the theft of over $12 million in digital assets.

Changpeng Zhao (CZ) pleaded guilty to violating the Bank Secrecy Act and agreed to pay a $50 million fine. Despite this, he has been released on bail for $175 million.

Heather Morgan, the wife of Ilya “Dutch” Lichtenstein linked to the 2016 Bitfinex hack, was sentenced to 18 months in prison for her conspiratory role in money laundering.

Gary Wang, co-founder and former Chief Technological Officer of FTX has appealed for no jail time as a key witness in the case.

David Kagel, a retired American lawyer, was sentenced to five years in prison for operating a Ponzi scheme. In May 2024, Kagel admitted to conspiracy charges and has now received his formal sentence.

A federal court in Brooklyn has sentenced former investment banker Rashawn Russell to 41 months in prison for his involvement in a cryptocurrency fraud scheme and identity theft. Investors suffered losses of approximately $1.5 million, which Russell must now repay.

The U.S. Department of Justice is pushing for a three-year prison sentence and a $50 million fine for the former Binance CEO, Changpeng Zhao (CZ), due to violations of federal sanctions and anti-money laundering laws.

The legal team of former FTX CEO Sam Bankman-Fried have challenged the prosecution's call for a maximum 50-year prison term, criticizing it as an outdated punishment method. This position was detailed in an official statement regarding the anticipated sentencing.

Sam Bankman-Fried found himself in unusual circumstances, sharing a cell with a former Honduran president and a former Mexican police chief with drug ties.

He could face up to 115 years in prison. A tentative sentencing date is set for March 28. Meanwhile, Caroline Ellison, Gary Wang (FTX co-founder), and Nishad Singh (FTX CTO) might be spared prison and hit with fines instead.