Sam Bankman-Fried files formal pardon application with Trump administration

Sam Bankman-Fried, the former CEO of failed crypto exchange FTX, has formally applied for a presidential pardon from US President Donald Trump following his 2023 fraud conviction and 25-year prison sentence, according to a filing that appeared on the US Department of Justice Office of the Pardon Attorney website. The application, listed as pending as of June 1, is categorized as a "pardon after completion of sentence" and adds another front to Bankman-Fried's ongoing legal fight.

In a January New York Times interview, Trump said "No, I don't plan to" when asked if he would pardon Bankman-Fried. The pardon application follows a separate legal effort launched months ago in which Bankman-Fried sought a new trial in Manhattan federal court, arguing that newly available witness testimony could undermine key aspects of the government's case. That request was denied by Judge Lewis Kaplan, who oversaw Bankman-Fried's 2023 criminal trial. In recent months, Bankman-Fried has also posted a series of social media messages that appear increasingly aligned with President Trump, including comments highlighting the S&P 500 index's continued gains during Trump's second term.

In November 2023, a jury convicted Bankman-Fried on seven counts of fraud, conspiracy and money laundering for orchestrating the misuse of customer funds at FTX and its affiliated trading firm, Alameda Research, following the exchange's dramatic collapse a year earlier. The case is widely regarded as one of the largest financial fraud cases in the cryptocurrency industry's history. Bankman-Fried has consistently denied committing criminal fraud. His appeal of the conviction and sentence remains pending.

Other senior FTX executives also received prison sentences after cooperating with prosecutors or pleading guilty. Ryan Salame, who worked at Alameda Research before serving as co-CEO of FTX Digital Markets, the exchange's Bahamian affiliate, was sentenced to 90 months in prison after pleading guilty to conspiracy to make unlawful political contributions and conspiracy to operate an unlicensed money-transmitting business. Caroline Ellison, the former CEO of Alameda Research and a key government witness at Bankman-Fried's trial, was sentenced to two years in prison. Prosecutors credited her extensive cooperation with the government, which contributed to a significantly lighter sentence than those sought for other FTX executives. She was released in January. The US Securities and Exchange Commission (SEC) issued a 10-year prohibition against Ellison serving in any executive positions at any publicly traded firm or any digital asset exchange.