Sam Bankman-Fried, the convicted founder of the collapsed crypto exchange FTX, submitted a formal request for a presidential pardon from Donald Trump on Monday. The filing was sent to the Office of the Pardon Attorney within the U.S. Department of Justice, seeking a “pardon after completion of sentence.” In an interview with FOX Business, Bankman-Fried said he “absolutely” wants a pardon but declined to say whether his family or contacts are lobbying the administration on his behalf.
A 25-Year Sentence and Billions in Losses
In March 2024, a federal judge sentenced Bankman-Fried to 25 years in prison after a jury found him guilty on two counts of wire fraud and five counts of conspiracy. The court concluded that FTX customers lost $8 billion, equity investors lost $1.7 billion, and lenders to Alameda Research lost $1.3 billion. The sentence came after a trial that detailed how Bankman-Fried used customer deposits to fund venture investments, real estate, and political donations through Alameda, his hedge fund.
Bankman-Fried’s Defense: Customers Made Whole
Bankman-Fried argues the case was unfair. He claims that FTX customers have been repaid 170% on their deposits—a reference to the recovery process overseen by bankruptcy administrators—and insists he didn't steal user funds. “I didn’t steal user funds,” he told FOX Business. But prosecutors and victims’ lawyers note that the repayments come from assets seized after the collapse, not from any voluntary restitution by Bankman-Fried. The 25-year sentence, one of the stiffest in a white-collar case, reflects the judge’s assessment of the scope of the fraud.
Token Markets React to the News
The news of the pardon request sent FTX’s native token, FTT, into a brief rally. The token surged 45% to roughly $0.33 before settling. Still, FTT trades 99.5% below its all-time high of $84, a reminder of how far the exchange’s ecosystem has fallen since its November 2022 collapse. The rally appeared to be driven by speculation that a pardon could reopen some path for FTX’s revival, though no legal mechanism for that exists under the current bankruptcy plan.
Bankman-Fried’s pardon request now sits with the Office of the Pardon Attorney, which evaluates clemency applications and makes recommendations to the president. The Justice Department does not comment on pending applications, and Trump has not addressed the matter publicly. For now, Bankman-Fried remains at the Metropolitan Detention Center in Brooklyn, waiting to see whether a second chance comes from the White House.
