Sam Bankman-Fried, the disgraced founder of the cryptocurrency exchange FTX, has formally applied for a presidential pardon from former President Donald Trump. Bankman-Fried is currently serving a 25-year prison sentence following his conviction on multiple federal fraud charges related to the collapse of FTX and its sister trading firm, Alameda Research.
The application, filed with the Department of Justice, seeks a pardon ‘after completion of sentence.’ This means that if granted, Bankman-Fried’s convictions would be legally forgiven once he has served his jail time. It is distinct from a commutation, which would reduce the length of his sentence.
At 34 years old, the former billionaire has been incarcerated for two years of his sentence. He has consistently maintained his innocence and is currently pursuing an appeal against his conviction and sentence.
FTX Collapse and Bankman-Fried’s Rise
Bankman-Fried rose to prominence as a leading figure in the cryptocurrency space, with FTX becoming one of the world’s largest and most popular crypto exchanges, serving millions of users. The firm’s dramatic downfall in 2022 was triggered by allegations that Bankman-Fried had misappropriated customer deposits, using them for personal investments and to cover debts.
Pardon Application in Context
Bankman-Fried’s request is among a substantial volume of clemency applications. Records from the Office of the Pardon Attorney for the Department of Justice indicate that over 20,000 requests for pardons or commutations are currently pending.
Former President Trump has a history of issuing pardons during his term, including for individuals involved in the January 6th Capitol attack, former staff members facing criminal accusations, the founder of a dark web marketplace, and notably, the leader of another cryptocurrency platform, Binance.
Earlier this year, when questioned about the possibility of pardoning Bankman-Fried, Trump indicated that he would not do so. White House representatives have declined to comment on the recent application, and a lawyer for Bankman-Fried did not respond to requests for comment.
