Joseph Bankman and Barbara Fried, both Stanford Law School professors, are actively exploring avenues to secure a presidential pardon for their son, Sam Bankman-Fried, the disgraced co-founder of the collapsed cryptocurrency exchange FTX. According to a Bloomberg report, the couple has recently engaged in discussions with attorneys and individuals connected to former President Donald Trump’s circle to advocate for clemency. However, it remains unclear whether they have directly contacted the White House. Their 32-year-old son was sentenced to 25 years in prison in March 2024 for fraud related to FTX’s multibillion-dollar collapse.
Contrast with Cooperating FTX Executives
The push for a pardon follows a pattern of leniency granted to other former FTX executives who cooperated with authorities. Caroline Ellison, former CEO of FTX’s sister hedge fund Alameda Research, received a reduced two-year sentence and was released three months early after aiding prosecutors. Similarly, Ryan Salame, an ex-FTX executive, saw his 7.5-year sentence shortened by a year under the First Step Act, which rewards good behavior. Gary Wang and Nishad Singh, former technology and engineering chiefs at FTX, avoided prison entirely, receiving time served and supervised release after assisting investigators. In contrast, Bankman-Fried, who did not cooperate, faces a decades-long sentence.
Clemency Precedents and Challenges.
The family’s efforts mirror recent high-profile pardon campaigns, such as that of Ross Ulbricht, founder of the Silk Road darknet marketplace, whom Trump pardoned in January 2024 after sustained advocacy. However, Bankman-Fried may lack comparable public support. Speculation about a potential pardon surged in late 2023, partly due to his ties to Democratic donors and a remark by Tesla CEO Elon Musk, who claimed he’d “be shocked” if no pardon emerged. Yet no prominent political figures, including President Joe Biden, have endorsed clemency.
FTX’s Creditor Repayment Plan.
Meanwhile, FTX’s court-approved reorganization plan, enacted in January 2024, promises to repay creditors up to 119% of their claims. The first payments will prioritize “convenience class” users—those owed $50,000 or less—marking a rare positive outcome in the wake of the exchange’s implosion. Despite this, Bankman-Fried’s legal future hinges on a contentious political landscape, with his parents’ lobbying efforts facing steep odds in an election year where Trump’s stance remains unknown.