Trump Declares: SBF Won’t Get a Pardon—Crypto’s Poster Boy Faces Full Legal Reckoning
The political winds have shifted, and they're blowing cold for one of crypto's most infamous figures.
In a statement that cuts through the usual speculation, former President Donald Trump has explicitly ruled out granting any future pardon to Sam Bankman-Fried. The message is stark: the former FTX CEO will serve his full sentence.
The End of the 'Effective Altruism' Defense
Forget the talk of philanthropic intentions and complex financial engineering. The legal reality is now binary—guilty as charged. The judicial system bypassed the narrative SBF's team tried to build, focusing instead on the billions in customer funds that vanished. The verdict wasn't just a loss for Bankman-Fried; it was a reputational gut-punch for an industry already battling trust issues.
A Warning Shot to Crypto's Wild West
This isn't just about one man. Trump's pre-emptive pardon denial sends a clear signal to the entire digital asset space: the era of operating with impunity is over. Regulatory scrutiny is tightening globally, and the expectation of accountability—real, financial, and criminal—is being cemented into law. It turns out 'moving fast and breaking things' works less well when the things you break are federal statutes.
One cynical finance veteran quipped, 'It's the ultimate rug pull—when the government seizes the keys to your freedom.' The saga closes a chaotic chapter, proving that in finance, whether traditional or crypto, the house always wins. And sometimes, the house is the United States Department of Justice.
Trump’s crypto pardons stop short of Bankman-Fried
A presidential pardon for Bankman-Fried seems unlikely. He was one of the largest donors to Joe Biden’s 2020 presidential campaign. At the time, Bankman-Fried donated $5.2 million to Trump’s opponent, supporting the Democratic Party.
Over the 12 months, Trump has issued pardons to several prominent figures in the crypto space. Those pardoned include Silk Road founder Ross Ulbricht and former Binance CEO Changpeng Zhao.
Two years ago, Bankman-Fried was found guilty of fraud and conspiracy due to the FTX collapse. At the moment, SBF is serving a 25-year prison term and is appealing the ruling.
Caroline Ellison to be free from federal custody in 11 days
Caroline Ellison will leave federal custody on January 21. The ex-chief of Alameda Research has been in community confinement since October. She was previously held at a federal prison in Connecticut.
Caroline Ellison is being released from federal custody on January 21, 2026. Source: The Federal Bureau of Prisons.
In December of 2022, Ellison pleaded guilty to fraud and conspiracy charges connected to the collapse of FTX. She testified against Bankman-Fried during his trial for fraud the year after.
The ex-girlfriend of Bankman-Fried was sentenced to two years in prison. At the time, she was also ordered by U.S. District Judge Lewis Kaplan to forfeit $11 billion. Ellison was imprisoned back in November 2024.
Due to her early release date, Ellison will serve a short prison term of around one year and two months. Her early release is likely due to good behavior and helping investigators.
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