Trump rules out clemency for Bankman-Fried

Donald Trump has said he will not grant a presidential pardon to Sam Bankman-Fried, the former chief executive of the collapsed cryptocurrency exchange FTX, making clear that the disgraced entrepreneur will continue to serve his prison sentence if Trump returns to the White House.

Speaking in an interview, Trump dismissed speculation that he might intervene on behalf of Bankman-Fried, who was sentenced to 25 years in federal prison after being convicted of fraud, conspiracy and related offences tied to the dramatic downfall of FTX in 2022. The former president’s comments remove a line of hope that had quietly circulated among some supporters of Bankman-Fried, particularly given his past political donations and attempts to position himself as a policy influencer in Washington.

Bankman-Fried, often referred to as SBF, was once one of the most prominent figures in the digital-asset industry, celebrated for turning FTX into a global trading platform valued at tens of billions of dollars. That image unravelled when investigators found that customer funds had been misused and channelled to affiliated trading firm Alameda Research, leaving billions of dollars missing and triggering one of the largest corporate collapses in financial history.

A federal jury found Bankman-Fried guilty on multiple counts in late 2023, and he was sentenced in 2024 after prosecutors argued that his actions caused lasting harm to investors, customers and confidence in emerging financial markets. He has maintained his innocence in public statements and is pursuing an appeal, though legal experts say overturning the conviction would be challenging given the weight of evidence presented at trial.

Trump’s refusal to consider clemency is notable because presidential pardons have often been unpredictable, shaped by personal relationships, political calculations or arguments about excessive sentencing. During his first term, Trump granted clemency to a range of high-profile figures, including business executives and political allies, sometimes against the advice of the Department of Justice.

In Bankman-Fried’s case, Trump signalled that the scale of the alleged wrongdoing and its impact on ordinary people were decisive. The collapse of FTX froze customer accounts across continents, wiped out savings and triggered regulatory scrutiny of cryptocurrency markets worldwide. Lawmakers and regulators have repeatedly cited the case as evidence of the risks posed by lightly regulated digital-asset platforms.

The issue also intersects with political funding. Bankman-Fried was a prolific donor during the 2020 election cycle, contributing millions of dollars to candidates and political committees, largely aligned with Democratic causes. Court filings and testimony later revealed that some of those donations were allegedly funded with misappropriated customer money, an allegation that further damaged his standing in Washington.

Trump’s comments appear designed to draw a clear line between himself and a figure who has become emblematic of excess and misconduct in the crypto boom. While Trump has, at times, expressed scepticism about digital currencies, he has also shown interest in courting crypto voters and entrepreneurs during the current campaign cycle, framing himself as more open to innovation than his political rivals. By ruling out a pardon, he may be seeking to reassure sceptical voters that support for innovation does not extend to forgiving large-scale financial fraud.

For the cryptocurrency industry, the stance underscores how the FTX saga continues to shape political and regulatory debates. Since the collapse, regulators in the United States and abroad have pushed for tighter oversight of exchanges, clearer rules on custody of customer assets and stronger corporate governance standards. Several major platforms have adjusted their operations, increased transparency or exited certain markets altogether.

Bankman-Fried’s legal fight is far from over. His appeal is expected to focus on procedural issues, evidentiary rulings and the severity of the sentence. Any successful appeal could reduce his prison term or lead to a retrial, though such outcomes are statistically rare in complex financial cases.

The former FTX executive is currently serving his sentence in federal custody, having been transferred between facilities following sentencing. His lawyers have argued that he faces harsh conditions and that the sentence is disproportionate when compared with penalties imposed in other financial crime cases, arguments that prosecutors and judges have rejected.