Sam Bankman-Fried, the disgraced founder of the collapsed cryptocurrency exchange FTX, has formally petitioned President Donald Trump for a pardon, according to records from the Office of the Pardon Attorney. The request comes as Bankman-Fried serves a 25-year prison sentence for orchestrating one of the largest financial frauds in U.S. history.
The former crypto mogul, once hailed as the industry's wunderkind, was convicted on multiple counts of fraud and conspiracy after FTX imploded in late 2022. Prosecutors proved that he illegally diverted billions of dollars in customer funds to finance lavish personal expenses, political donations, and high-risk trading bets through his hedge fund, Alameda Research.
Bankman-Fried's pardon application, filed while he remains incarcerated, seeks clemency after the completion of his sentence, the pardon office's website shows. The move follows reports that he has been privately lobbying the Trump administration for a reprieve, though the president told The New York Times in January that he had no intention of granting one.
Trump has already pardoned at least one high-profile figure from the crypto world this term. In October, he granted clemency to Changpeng Zhao, the founder of rival exchange Binance, who had pleaded guilty to failing to maintain an effective anti-money laundering program. Zhao served four months in prison before receiving a full pardon.
The White House defended that decision at the time, framing it as a corrective to what it called the Biden administration's "war on cryptocurrency." But Trump quickly distanced himself from the move, suggesting he was unfamiliar with Zhao's case. The pardon drew criticism given the Trump family's business ties to Binance, though press secretary Karoline Leavitt insisted that "neither the president nor his family have ever engaged, or will ever engage, in conflicts of interest."
Bankman-Fried's request has reignited debate over the Trump administration's approach to crypto industry figures. Americans for Financial Reform, a progressive watchdog group, condemned the application as "one more striking indication of the level of impunity that crypto industry figures expect from the President." The group added in a statement Monday that "this particular wish may or may not be granted, but the request—despite Bankman-Fried's conviction on multiple counts of fraud—should come as little surprise."
The FTX founder's case remains a cautionary tale for the crypto sector. His exchange's collapse triggered a wave of regulatory scrutiny and investor panic, leading to billions in losses for customers worldwide. Bankman-Fried was a major donor to both Democratic and Republican causes, but his political contributions—many funded with stolen customer money—have since become a focal point of the fraud case.
The pardon application lands as Trump continues to wield clemency power in ways that blur traditional political lines. The president has granted pardons to a range of controversial figures, including those convicted in connection with the January 6 Capitol riot, and has signaled a willingness to intervene in cases tied to his political allies. A separate request from Bankman-Fried, however, would test the limits of that approach, given the scale of his crimes and the bipartisan condemnation of his actions.
For now, the Office of the Pardon Attorney will process the application through standard channels, though the ultimate decision rests with the president. With Trump's past statements suggesting he is disinclined to act, Bankman-Fried's chances appear slim—but in the unpredictable world of Trump-era pardons, little can be ruled out.
