The founder of FTX has asked Trump for a pardon after nearly three years in prison
Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX, has officially appealed to U.S. President Donald Trump for a pardon. He filed the request after serving nearly three years of a 25-year prison sentence for financial crimes.
The investigation found that the former crypto tycoon used funds from FTX exchange clients to finance risky investments, personal expenses, and political donations.
The U.S. Department of Justice noted that billions of dollars entrusted by the platform’s users were diverted to third-party projects and expenses, which was one of the reasons for the company’s massive collapse.
FTX became one of the most high-profile bankruptcies in the history of the cryptocurrency industry, and its collapse in 2022 triggered a prolonged downturn in the digital asset market.
The defendant’s lawyers are seeking to have the case reviewed by appellate courts. The defense argues that some of the investments made with client funds turned out to be profitable.
The case is currently still pending in court.
At the same time, Bankman-Fried is campaigning for a presidential pardon. In particular, his representatives have reached out to Republican strategist Brian Lanza, who has ties to Donald Trump’s inner circle.
The former FTX CEO himself confirmed his intentions during a phone interview with Fox Business from prison.
“Absolutely,” Bankman-Fried replied when asked if he wanted to receive a pardon from the U.S. president.
According to the publication, during his second presidential term, Donald Trump has already granted nearly 100 pardons. He also signed an executive order pardoning thousands of people convicted in connection with the events at the Capitol on January 6, 2021.
At the same time, experts are criticizing the system that has developed around the pardon process. According to the Financial Times, some intermediaries can charge up to $1 million to lobby the White House on a case.
Among those who have previously received pardons from Trump are well-known figures in the crypto industry, including Changpeng Zhao, founder of Binance, and Arthur Hayes, co-founder of BitMEX.
Both were involved in cases related to violations of anti-money laundering laws.
Following the exchange’s bankruptcy, its investments in the field of artificial intelligence attracted significant attention. In particular, FTX had previously invested in Anthropic and Cursor, whose valuations have risen substantially in recent years.
The sale of these assets allowed FTX’s heirs to raise funds to pay creditors who lost money following the collapse of one of the world’s largest crypto exchanges.
According to the Financial Times, Bankman-Fried filed an official petition with the U.S. Department of Justice’s Pardon Office.
It turned out that the investments made by the FTX cryptocurrency exchange during its active period could have been extremely profitable, had it not been for the fact that client funds were used for this purpose. The total amount of deposits, approximately $5.1 billion, could have turned into $42.6 billion.
Caroline Ellison, the former partner of FTX founder Sam Bankman-Fried, has been transferred to a conditional detention regime, which entails either house arrest or placement in a rehabilitation center. This is a significant development in the case related to the collapse of the FTX cryptocurrency exchange.
Almost all customers of the bankrupt cryptocurrency exchange FTX will get their money back.
