The White House has confirmed that President Trump will not grant clemency to Sam Bankman-Fried, the founder of the now-collapsed cryptocurrency exchange FTX. This confirmation, provided by a White House official, reiterates Trump’s clear opposition to freeing the imprisoned crypto executive, aligning with earlier statements he made on the matter.
In an interview with a major publication earlier this year, Trump expressed his decision not to pardon Bankman-Fried, despite having previously granted clemency to other prominent figures in the cryptocurrency space. This includes well-known personalities like Changpeng Zhao and Arthur Hayes.
Bankman-Fried's legal team is actively seeking a presidential pardon, attempting to strengthen their case through strategic political alignment. Recently, he has made headlines by showcasing his criticism of the judiciary and promoting conservative viewpoints, which starkly contrasts with his previously known support for Democratic initiatives. Unfortunately for Bankman-Fried, this political pivot has not yet produced any positive results.
Meanwhile, his legal challenges continue. After being convicted on multiple counts of fraud and conspiracy in March 2024, he is now appealing the court's decision. His criminal case stems from the mishandling of customer deposits, which ultimately led to the bankruptcy of FTX, a platform once valued at $32 billion before its dramatic downfall in 2022.
The rejection of clemency puts a definitive end to any speculation that Trump’s favorable attitude towards cryptocurrency might lead to leniency for Bankman-Fried, a figure who is now often viewed unfavorably due to his past actions. Notably, Bankman-Fried made considerable donations to the Biden campaign in 2020 and did not provide similar support to Trump, which observers believe may have influenced his lack of clemency.
At the height of his success in early 2022, his net worth was approximately $26.5 billion, but the collapse of FTX eliminated that wealth and decimated the value of FTT, the exchange's native token. The fallout from this incident has resulted in heightened regulatory scrutiny on centralized trading platforms, prompting policymakers to advocate for stricter oversight of the cryptocurrency market to prevent future collapses.