TLDR
- Sam Bankman-Fried’s parents, both Stanford Law professors, are seeking a presidential pardon from Donald Trump for their son
- Their efforts come after Trump’s recent pardon of Silk Road founder Ross Ulbricht
- Bankman-Fried is currently serving a 25-year sentence for seven counts of fraud related to FTX collapse
- The parents have engaged with individuals connected to Trump’s inner circle
- Unlike Ulbricht, Bankman-Fried lacks widespread public support despite his claims of excessive sentencing
The parents of former FTX CEO Sam Bankman-Fried have launched efforts to secure a presidential pardon from Donald Trump for their son, who is currently serving a 25-year prison sentence for crypto fraud. Joseph Bankman and Barbara Fried, both Stanford Law School professors, have reportedly begun engaging with individuals connected to Trump’s inner circle to discuss potential clemency options.
Their pursuit of a pardon comes in the wake of Trump’s recent decision to commute the life sentence of Ross Ulbricht, the founder of online marketplace Silk Road. Ulbricht had served more than ten years in prison before receiving clemency, a move that has sparked increased interest in presidential pardons among other individuals facing federal charges.
The timing of these efforts appears strategic, as Trump has recently demonstrated willingness to use his clemency powers. However, Bankman-Fried’s case differs notably from Ulbricht’s, as the former crypto executive has struggled to gather substantial public support for his release.
Bankman-Fried, who is 32 years old, received his sentence after being convicted of seven counts of fraud, conspiracy, and money laundering. The charges stemmed from the spectacular collapse of FTX in November 2022, which began after reports emerged about financial irregularities at Alameda Research, FTX’s sister company.
The subsequent investigation revealed that Alameda Research had used backdoor code to access billions in customer funds from FTX, an arrangement that prosecutors proved was orchestrated by Bankman-Fried and other founding members of Alameda. This misuse of customer funds led to the exchange’s eventual bankruptcy.
Despite the severity of these charges, Bankman-Fried maintains that his 25-year sentence is excessively harsh. His defense points to the fact that most FTX customers have recovered their financial losses, though this argument has failed to generate widespread sympathy among the crypto community or general public.
The specific details of the pardon efforts remain somewhat unclear. Bloomberg’s report indicates that while Bankman-Fried’s parents have attempted to engage with the Trump administration, it’s uncertain whether any direct communications with the White House have occurred.
The push for clemency has coincided with increased activity in the pardon consulting sphere. Jeffrey Grant, whose law firm specializes in white-collar defendants, has reported a surge in pardon inquiries following Trump’s recent clemency decisions.
Sam Mangel, a white-collar prison consultant, has indicated receiving guidance about pardons from contacts within the Trump administration. Additionally, Alan Dershowitz, a Harvard Law School professor and former Trump lawyer, acknowledged receiving pardon inquiries but has advised potential candidates to wait.
Ryan Salame, another former FTX executive, is reportedly also seeking a presidential pardon, suggesting a broader movement among those connected to the collapsed crypto exchange to pursue clemency options.
The efforts of Bankman-Fried’s parents represent a continuation of their involvement in their son’s legal matters. Both were part of FTX’s inner circle and have maintained active roles in supporting their son throughout his legal proceedings.
Prior to its collapse, FTX had established itself as the world’s third-largest cryptocurrency exchange. The platform’s downfall began after a CoinDesk investigation exposed concerns about Alameda Research’s financial stability.
The court ordered Bankman-Fried to forfeit $11 billion as part of his sentence, adding a financial penalty to his prison term. This forfeiture represents one of the largest in a federal fraud case.
According to Bloomberg’s sources, Bankman and Fried may be encouraged by Trump’s self-proclaimed stance against government “lawfare,” hoping this perspective might make him more receptive to their son’s case.
The pardon efforts occur against the backdrop of ongoing recovery proceedings for FTX customers. While many users have recouped their losses, the full impact of the exchange’s collapse continues to reverberate through the cryptocurrency industry.
The former FTX CEO is currently serving his sentence in a federal facility, marking a stark contrast to his previous position as one of the most influential figures in the cryptocurrency industry.
