Trump Declines to Pardon Sam Bankman-Fried, Closing Speculation on Clemency

US President Donald Trump has said he has no intention of pardoning Sam Bankman-Fried, the former chief executive of collapsed crypto exchange FTX. The announcement, made during an interview with The New York Times, grouped Bankman-Fried with other high-profile figures Trump said he would not pardon.

Bankman-Fried is currently serving a 25-year federal prison sentence for misuse of customer funds. He was convicted in March 2024 and has remained in custody since August 2023, when a federal judge revoked his bail ahead of trial.

Trump's comments effectively end speculation that the former FTX executive might receive clemency. Bankman-Fried had reportedly sought to improve his chances by cultivating relationships with Republicans and right-wing media figures. Prediction market odds for a Trump pardon had already been low, with Polymarket assigning a 6% probability before 2027.

Why the Move Happened

Trump's decision appears to reflect broader political and legal calculations. He emphasized his support for the crypto industry during the interview, noting that he had received significant votes for backing digital assets.

At the same time, the president has maintained that legal outcomes—not political connections—should determine sentencing in high-profile cases. Bankman-Fried's conviction and sentence are seen as among the most severe for digital asset fraud, sending a signal to the industry about accountability.

Trump has previously pardoned other crypto-linked figures, including Ross Ulbricht and Changpeng Zhao, but these cases involved plea deals and shorter sentences.

How Markets Responded

The crypto sector has largely treated Trump's announcement as confirmation of an already low-probability event. Investors had been watching for any shifts in sentiment, but the decision aligns with existing market expectations.

Legal analysts note that the outcome reinforces the judiciary's role in handling financial crimes. With no political intervention likely, the focus has returned to Bankman-Fried's ongoing appeal. The Second Circuit Court of Appeals is expected to rule on his case soon, with a potential Supreme Court review remaining a long shot.

What Analysts Are Watching

The removal of clemency as a potential variable has simplified the outlook for SBF's legal path. Analysts now focus on the appellate court's decision and the broader implications for regulatory enforcement in crypto.

Investors remain attentive to how the case influences future policy. The collapse of FTX and related convictions have already spurred regulatory reforms, including new stablecoin legislation and oversight proposals.

For now, the legal process remains the only path forward for Bankman-Fried. Other FTX-related figures, including Caroline Ellison, are nearing the end of their sentences, adding to the case's resolution timeline.

The Trump administration's stance on crypto continues to shape the industry's regulatory environment. With the president pushing for pro-crypto policies and legal clarity, the sector appears to be moving toward a more structured and transparent framework.