Who Is Sam Bankman-Fried? Jailed FTX Founder Seeks Trump Pardon Years After Crypto Fraud Conviction

Sam Bankman-Fried, the former cryptocurrency billionaire whose spectacular downfall shook the global crypto industry, formally sought a pardon from US President Donald Trump. Sam Bankman-Fried, 34, is serving a 25-year prison sentence after being convicted in one of the largest financial fraud cases in US history. His application seeks a “pardon after completion of sentence”- a move that would not erase his conviction but could restore certain civil rights once he finishes serving his prison term. The request places the once-celebrated entrepreneur back in the spotlight years after the collapse of his crypto empire, FTX.

Who Is Sam Bankman-Fried?

Before his downfall, Sam Bankman-Fried was one of the most influential figures in the cryptocurrency

industry. A graduate of the Massachusetts Institute of Technology (MIT), he founded the crypto trading firm Alameda Research in 2017 and later launched the cryptocurrency exchange FTX in 2019.

As cryptocurrency markets boomed during the Covid-19 pandemic, FTX became one of the world’s largest digital asset exchanges. At its peak, the company was valued at around $32 billion, while Sam Bankman-Fried’s personal fortune soared into the tens of billions of dollars.

Known for his casual appearance and advocacy of “effective altruism”- a philosophy focused on earning wealth to give it away- he became a prominent figure in business, politics and philanthropy. He was also one of the largest donors to Democratic political campaigns and causes in the United States.

What Crime Was Sam Bankman-Fried Convicted Of?

Sam Bankman-Fried’s empire began unraveling in November 2022 when reports emerged about the financial relationship between FTX and Alameda Research. Within days, customers rushed to withdraw funds from FTX, triggering a liquidity crisis and ultimately forcing the exchange into bankruptcy. Federal prosecutors alleged that Sam Bankman-Fried secretly diverted billions of dollars in customer deposits from FTX to Alameda Research without users’ knowledge or consent.

According to prosecutors, the money was used to fund risky trading strategies, venture investments, political donations, luxury real estate purchases and other expenses. Following a high-profile trial, a jury found Sam Bankman-Fried guilty on multiple criminal counts. These included wire fraud, securities fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering. Prosecutors described the scheme as one of the largest financial frauds ever committed in the United States.

What Sentence Did Sam Bankman-Fried Receive?

In 2024, US District Judge Lewis Kaplan sentenced Sam Bankman-Fried to 25 years in federal prison. The judge also ordered him to forfeit more than $11 billion in assets and proceeds linked to the fraud.

Now, Sam Bankman-Fried has applied for a “pardon after completion of sentence.” Unlike a full pardon granted before or during a sentence, this type of clemency would take effect after he completes his prison term.

If granted, it would not overturn his conviction or erase the criminal record. However, it could restore certain rights, including the ability to vote, serve on a jury and potentially remove barriers to employment, licensing, housing and education.