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FTX Sentences Reduced, But SBF Stuck—Now His Parents Are Asking Donald Trump for a Pardon

FTX Sentences Reduced, But SBF Stuck—Now His Parents Are Asking Donald Trump for a Pardon

CCN2025/01/30 16:00
By: CCN
FTT+3.17%
Key Takeaways
  • Several former FTX executives received reduced sentences or leniency after cooperating with authorities.
  • Sam Bankman-Fried, the former CEO, did not see any reduction in his 25-year sentence.
  • His parents are reportedly exploring ways to secure a pardon for him, potentially through former President Donald Trump.

Several former FTX executives have been granted reduced sentences or leniency in exchange for cooperating with authorities following the crypto exchange’s collapse.

However, Sam Bankman-Fried, the founder and former CEO of FTX, has not been afforded the same consideration. Despite this, there are reports that his parents are actively seeking a way to have his sentence overturned, possibly through a presidential pardon.

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Leniency for Cooperating

The legal consequences of FTX’s collapse have been severe, but some former executives have seen their sentences lightened due to their cooperation with federal authorities.

Caroline Ellison , the former CEO of Alameda Research, received a sentence reduction after assisting prosecutors in their investigation of the collapse.

Initially sentenced to two years in prison, she began serving her term in September 2023, but due to her cooperation, her release date was moved up by three months.

Ryan Salame , another former FTX executive, had his sentence reduced by one year. Originally sentenced to 7.5 years, Salame is now expected to be released on March 1, 2031, benefiting from good behavior credits under the First Step Act, a 2018 law aimed at reforming federal sentencing.

Gary Wang , FTX’s former technology chief, received a lenient sentence in November, being granted time served and three years of supervised release.

Similarly, Nishad Singh , the former engineering chief of FTX, also had his sentence lightened after cooperating with investigators.

While these individuals benefited from leniency, Sam Bankman-Fried has not enjoyed the same treatment.

SBF’s 25-Year Sentence

Sam Bankman-Fried , the architect of the FTX disaster, was sentenced to 25 years in prison for fraud following the collapse of his crypto exchange.

As of now, he has not received any reduction to his sentence, despite his appeal and assertions that the punishment is too harsh, particularly since he claims most of FTX’s customers have been compensated for their losses.

Though Bankman-Fried’s legal team continues to fight his conviction, there’s a possibility his fate could change—outside of the courts.

Pardon Push: Bankman-Fried’s Parents Seek Clemency

Sources close to Bankman-Fried’s family report that his parents, Joseph Bankman and Barbara Fried, are actively exploring avenues to secure a pardon for their son.

The couple, both Stanford University professors, have reportedly met with former President Donald Trump’s allies to discuss clemency options.

However, it remains unclear whether they have reached out directly to the White House or the Trump administration.

Bankman-Fried’s parents are attempting to appeal to Trump’s history of granting pardons to white-collar criminals, a group that includes figures such as former media mogul Conrad Black and political strategist Roger Stone.

The idea of a pardon gained momentum in December , fueled by speculation about Bankman-Fried’s political connections, including his ties to the Democratic Party.

Elon Musk also fueled speculation, tweeting that he would be “shocked” if a pardon didn’t occur. However, no significant political figures, including President Joe Biden, have shown public support for the move.

For now, Bankman-Fried continues to serve his 25-year sentence, but his parents’ efforts to seek clemency may keep the door open for potential changes to his fate.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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