Former President Donald Trump has notably refused to grant clemency to Sam Bankman-Fried, the ex-chief executive of failed cryptocurrency exchange FTX, who is currently serving a 25-year sentence for fraud and conspiracy charges. This decision stands in contrast to Trump's previous pardons extended toward other significant figures within the crypto industry, including Changpeng Zhao, the founder of Binance, and Ross Ulbricht, the creator of the infamous Silk Road marketplace.
According to reports, Bankman-Fried's parents, Barbara Fried and Joseph Bankman—both former Stanford Law School professors—engaged legal representatives and individuals within Trump's political sphere in a concerted effort to secure a presidential pardon for their son. These attempts, however, were unsuccessful despite Trump's known support for Bitcoin and his favorable disposition toward digital asset entrepreneurs.
In the months prior to the denial of clemency, Bankman-Fried undertook efforts to rehabilitate his public image within Republican circles, including media appearances where he expressed admiration for Trump's past pardon of the former Honduran president Juan Orlando Hernández, who was convicted of cocaine importation. Despite these strategic moves, the petition for pardon did not achieve its intended outcome.
Complicating the political dynamics, Bankman-Fried was a substantial donor to the Biden presidential campaign in 2020, contributing approximately $5.2 million. Such affiliations may have presented a sensitive consideration for Trump, potentially dissuading a decision to pardon. Presently, Bankman-Fried remains incarcerated at the Metropolitan Detention Center in Brooklyn, reportedly sharing housing with high-profile inmates such as rapper Sean “Diddy” Combs, who also is not slated for clemency.
The nature of Trump's clemency grants to other cryptocurrency figures underscores notable distinctions. In January 2025, Ross Ulbricht was pardoned following over a decade of imprisonment for facilitating roughly $1 billion in illicit drug transactions through the Silk Road online marketplace. Similarly, in March, co-founders of the cryptocurrency derivatives platform BitMEX—Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer—received pardons after convictions related to anti-money laundering violations.
Possibly the most contentious was the October pardon of Binance founder Changpeng Zhao. Zhao had pleaded guilty to charges concerning facilitation of money laundering and faced a $50 million fine. Critics, including Congresswoman Maxine Waters and Senator Elizabeth Warren, raised concerns about potential conflicts of interest, pointing out Binance's substantial $2 billion investment into Trump’s World Liberty Financial project, which reportedly yields $48 million to $52 million annually to Trump's family. Further, Binance invested $800,000 in lobbying efforts seeking clemency, though Zhao denied any quid pro quo implications.
The refusal to pardon Bankman-Fried appears rooted in the severity and character of his crimes contrasted with those of the pardoned individuals. While Ulbricht's case garnered libertarian attention due to its harsh sentencing, the BitMEX founders were convicted of regulatory non-compliance rather than direct fraud. Binance’s legal issues centered on regulatory infractions without evidence of direct customer fund theft. By contrast, FTX's collapse under Bankman-Fried's leadership resulted in losses exceeding $8 billion to customers through fraudulent and misappropriated assets.
In an interview with a major publication, Trump defended his supportive stance on the cryptocurrency market, citing it as influential in garnering electoral support and expressing a personal affinity for crypto innovation. However, his remarks suggested a boundary when it comes to extending leniency to those convicted of defrauding customers. Furthermore, sparing Bankman-Fried may have risked alienating his political base given Bankman-Fried’s significant contributions to Democratic campaigns, despite the latter’s recent gestures toward Republican values.
Bankman-Fried's legal team continues to pursue appeals against his conviction, whereas the other clemency recipients have completed or are nearing the completion of their sentences. Trump's distinct approach to pardons within the crypto sector highlights the complex interplay of political considerations, the nature of the alleged offenses, and public perceptions surrounding the individuals involved.