FTX founder Sam Bankman-Fried asks Trump for clemency after multibillion-dollar fraud conviction | Today’s news
Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has formally requested a presidential pardon from US President Donald Trump while serving a 25-year prison sentence for fraud and conspiracy.
Bankman-Fried’s clemency request is currently listed as “pending,” according to records released by the Office of the Pardon Attorney within the U.S. Department of Justice.
The move comes despite Trump’s earlier comments suggesting he was unlikely to pardon the former cryptocurrency executive.
From Crypto Billionaire to Convicted Fraudster
Known by his initials “SBF,” Bankman-Fried has risen to prominence as one of the most influential figures in the cryptocurrency industry. By the time he was 30, he had amassed a multi-billion dollar fortune and turned FTX, which he co-founded in 2019, into the second largest cryptocurrency exchange in the world.
Bankman-Fried was once one of the most prominent figures in the cryptocurrency industry and turned FTX into one of the world’s largest digital asset exchanges.
His business empire collapsed in November 2022 after it was revealed that billions of dollars in customer funds had been diverted to Alameda Research, a hedge fund he founded.
In March 2024, he was sentenced to 25 years in federal prison after being convicted of two counts of wire fraud and five counts of conspiracy.
According to court findings, FTX customers lost approximately $8 billion, equity investors lost $1.7 billion, and lenders to Alameda Research lost $1.3 billion after the crypto empire collapsed.
Conviction and prison sentence
In November 2023, a federal jury in New York found Bankman-Fried guilty of seven criminal counts, including fraud, embezzlement and conspiracy.
Prosecutors alleged he orchestrated one of the largest financial frauds in US history by misusing customer deposits to cover losses, finance investments and support political donations.
He was subsequently sentenced to 25 years in federal prison.
The appeal is still pending
Bankman-Fried appealed both the conviction and sentence, arguing that legal errors affected the outcome of his trial.
His request for clemency adds a new dimension to his efforts to reverse or reduce his sentence.
Since returning to office, Trump has pardoned a number of white-collar criminals, including former Indiana congressman Stephen Buyer, who was convicted of insider trading.
Sam Bankman-Fried says she “absolutely” wants Trump’s pardon
Bankman-Fried has publicly acknowledged that he wants a presidential pardon from Trump and has said from prison that he would welcome a pardon as he continues to challenge his fraud conviction.
Speaking to a Fox Business correspondent from a federal prison, the former cryptocurrency billionaire said he would “absolutely” accept clemency if offered.
Asked if she wanted a pardon from the White House, Bankman-Fried said, “Absolutely. It would be, of course, you know, ultimately up to the president, not me.”
However, he declined to say whether his family was actively seeking clemency on his behalf.
Asked if his parents or other loved ones lobbied the administration, Bankman-Fried said, “I can’t speak for them.”
Maintains innocence over customer funds
Bankman-Fried continued to dispute the key allegations that led to his conviction, insisting he did not steal customers’ money.
“I didn’t even steal user funds,” he said.
A former crypto executive claimed that customers of the collapsed exchange have since recovered more than the value of their original holdings.
“Customers have now been repaid around 170% of their deposits. It’s one of the few times where the platform has been critical where customers have been more than complete,” he said.
Bankman-Fried also questioned why prosecutors sued despite the repayment.
“And yet there was, you know, not just a criminal investigation, but a prosecution. And, you know, decades of punishment,” he added.
He criticizes the handling of customer repayments
Bankman-Fried further argued that the bankruptcy and collection process took too long.
“I can only tell you what I think, and you know, in the end, the customers were paid almost twice what they had on the platform again,” he said.
“And it’s a huge disservice to them that it took three years.”
Read also | Bankman-Fried’s mother said she is not calling the court on her son’s behalf
