Sam Bankman-Fried submitted a pardon application to the Trump administration as he serves a 25-year prison sentence handed down in 2024 for his role in FTX's collapse. The disgraced crypto exchange founder faces convictions on multiple counts including wire fraud, conspiracy, and money laundering stemming from the November 2022 implosion of the exchange, which evaporated $8 billion in customer funds.
Bankman-Fried's legal team pursued the pardon avenue following his sentencing last year. The move reflects a broader pattern of cryptocurrency figures seeking clemency from the new administration, which has signaled more openness to crypto industry concerns compared to the Biden years. Trump appointed Paul Atkins, a crypto-friendly SEC commissioner, to chair the securities regulator and has discussed creating a "strategic Bitcoin reserve" for the U.S. government.
The pardon bid arrives amid ongoing litigation tied to FTX's bankruptcy. Creditors and former customers continue seeking recovery of remaining assets, while Bankman-Fried's associates face their own legal battles. Gary Wang, FTX's former engineering lead, and Caroline Ellison, ex-CEO of Alameda Research, pleaded guilty and cooperated with prosecutors, receiving significantly lighter sentences than their former boss.
Bankman-Fried's application represents a long-shot gambit for the 32-year-old entrepreneur, who once ranked among crypto's most prominent figures before his dramatic downfall. His fortune, once estimated at $26 billion, evaporated when the exchange's fraudulent lending practices and misuse of customer deposits came to light. The collapse triggered a cascade of failures across crypto platforms and venture funds that had backed FTX.
Whether Trump will grant the pardon remains uncertain. The administration has shown willingness to pardon figures from its political orbit and