The parents of the disgraced FTX co-founder Sam Bankman-Fried are looking into options to obtain a pardon for their son from former US President Donald Trump, according to a Bloomberg report.
Stanford Law School professors Joseph Bankman and Barbara Fried have reportedly held discussions in recent weeks with attorneys and individuals linked to Trump’s circle regarding potential clemency for their 32-year-old son, who was sentenced to 25 years for fraud in 2024. It remains uncertain whether they have directly contacted the White House.
Pardon Uncertainty
Following the collapse of FTX, a number of its former executives have benefited from sentence reductions in exchange for their cooperation with investigators. For instance, Caroline Ellison, who once led Alameda Research, was granted a reduced sentence for cooperating with prosecutors investigating FTX’s collapse. Sentenced to two years and beginning her prison term in September 2023, she secured an early release by three months.
Former FTX executive Ryan Salame also received a sentence reduction – his original 7.5-year term was shortened by a year, with his expected release now set for March 1, 2031, under the First Step Act, which incentivizes good behavior.
Additionally, FTX’s ex-technology chief, Gary Wang, and former engineering chief Nishad Singh similarly benefited from a reduced sentence after assisting authorities and managed to dodge prison. Both were sentenced to time served and three years of supervised release.
The same cannot be said for Bankman-Fried, who was sentenced to 25 years in prison on March 28, 2024.
The latest efforts to secure Bankman-Fried’s release follow a trend of seeking clemency for prominent figures behind bars. A notable example is Ross Ulbricht, the creator of the Silk Road darknet marketplace, who was granted a pardon by Trump on January 21st after his supporters campaigned for years.
However, Bankman-Fried may not receive the same level of backing as Ulbricht.
Speculation about a possible pardon for Bankman-Fried surged in December, largely due to discussions about his Democratic Party connections. Tesla chief Elon Musk further fueled rumors by stating he would be “shocked” if a pardon weren’t granted. Despite this, prominent politicians, including former President Joe Biden, have not expressed support for clemency.
FTX Reorganization Plan
FTX’s court-approved reorganization plan, which took effect on January 3, will return up to 119% of creditor claims. Under this plan, an initial group called “convenience classes” – which includes users with claims of $50,000 or less – will be the first to receive payments.
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