Donald Trump will not grant a pardon to Sam “SBF” Bankman-Fried, according to reports regarding the former…

Lede

Donald Trump will not grant a pardon to Sam “SBF” Bankman-Fried, according to reports regarding the former cryptocurrency executive’s legal standing. Bankman-Fried is currently serving a 25-year prison sentence for his central role in the historic collapse of the FTX exchange. This decision clarifies the executive branch’s position on the case, confirming that Bankman-Fried will remain in federal custody to serve out the term handed down by the court. The former CEO has been behind bars since August 2023, a period that began when a federal judge revoked his bail prior to the commencement of his criminal trial. The official sentencing occurred later, in March 2024, following a high-profile legal proceeding that examined the internal operations of the failed exchange. By confirming that no pardon is forthcoming, the administration ensures that the consequences of the conviction remain in place, emphasizing the severity of the legal judgment against the former industry leader. Bankman-Fried’s incarceration continues as he serves the multi-decade sentence, with the refusal of executive clemency marking a significant milestone in the aftermath of the FTX insolvency. The refusal stands despite various reports suggesting that the former executive had sought to establish ties with political figures in hopes of a different outcome. Consequently, the 25-year term remains the definitive legal reality for the former CEO as he continues his time in the federal prison system.

Context

The decision regarding Sam Bankman-Fried comes amidst a broader landscape of executive actions involving figures in the digital asset and technology sectors. In January, Donald Trump issued a pardon for Silk Road founder Ross Ulbricht shortly after taking office. Additionally, the president granted a pardon to former Binance CEO Changpeng “CZ” Zhao, who had previously served a four-month prison sentence. These actions contrast with the current status of Bankman-Fried and other former FTX and Alameda Research leadership. Caroline Ellison, who served as the CEO of Alameda Research, was sentenced to a much shorter term of two years in prison. Records from the Federal Bureau of Prisons indicate that in October, Ellison was transferred from the Federal Correctional Institution in Danbury, Connecticut, to a Residential Reentry Management field office located in New York City. This transfer was part of her transition toward the conclusion of her sentence, with her official release scheduled for January 21. Other executives involved in the case, such as Ryan Salame, the former co-CEO of FTX Digital Markets, also received significantly less prison time compared to Bankman-Fried. These varied outcomes highlight the different legal trajectories for those involved in the exchange’s downfall, with Bankman-Fried facing the most substantial sentence among his former peers. While some industry figures have received clemency, the path for the former FTX head remains strictly tied to the original 25-year judgment and the ongoing judicial process.

Impact

The impact of the 25-year sentence on Sam Bankman-Fried is rooted in his conviction on seven felony counts. These charges were related to the extensive misuse of customer funds at FTX, leading to one of the largest financial collapses in the history of the cryptocurrency industry. The sentencing in March 2024 solidified the legal consequences for these actions, following his continuous detention that began in August 2023. The denial of a pardon means that the 25-year prison term remains the primary mechanism of accountability for the seven felony counts. This duration is notably longer than the sentences given to other involved parties, such as Caroline Ellison’s two-year term. The legal weight of these seven counts has been maintained by the court, and without executive intervention, the sentence is expected to be served in full. The conviction and subsequent denial of clemency also serve as a definitive conclusion to the era of FTX’s operation under Bankman-Fried’s leadership. For the broader industry, this situation underscores the permanence of the judicial findings regarding the fraud and mismanagement that occurred. The focus remains on the specific legal violations identified during the trial, which resulted in the significant prison time Bankman-Fried is now serving. His ongoing incarceration since August 2023 marks the beginning of a long-term removal from the industry he once led, as the 25-year sentence continues without the prospect of a presidential reprieve.

Outlook

With a presidential pardon no longer an option, Sam Bankman-Fried’s legal future now rests entirely on his appeal in federal court. In November, the US Court of Appeals for the Second Circuit heard arguments from his legal representatives regarding the appeal of the former CEO’s judgment. This judicial process represents the final traditional avenue for challenging both the conviction on seven felony counts and the 25-year sentence. While the court has heard the arguments, it is eventually expected to issue a formal decision on the matter. Should the US Court of Appeals for the Second Circuit deny the request to overturn or modify the judgment, Bankman-Fried’s last remaining recourse would be to file for a review of his case with the Supreme Court. Meanwhile, the timelines for other individuals involved in the FTX collapse continue to advance. Caroline Ellison is approaching the end of her two-year sentence, with a scheduled release date of January 21 following her October transfer to a reentry facility in New York City. For Bankman-Fried, the outlook is defined by the wait for the appellate court’s ruling. The transition from seeking executive clemency to relying solely on the judicial appeals process marks a final shift in strategy. The industry and legal observers now await the Second Circuit’s decision, which will determine if the 25-year sentence will stand or if the case will see further developments in the higher courts.