President Donald Trump explicitly ruled out a pardon for convicted FTX founder Sam Bankman-Fried on Thursday, telling The New York Times that the former exchange CEO does not qualify for clemency. The decisive rejection ends months of speculation that Bankman-Fried’s family, or his previous political donations, could secure his release from a 25-year federal prison sentence.
FTT Token Reacts
Markets repriced the finality of the decision immediately. The bankrupt exchange’s native token, FTT, fell 4.8% to $0.54 in early trading. Volume remained thin as speculators exited long-shot bets on a potential regulatory miracle.
The ‘Martyr vs. Thief’ Distinction
Trump’s refusal highlights a sharp policy distinction in his administration’s approach to crypto justice. While the President granted pardons to Silk Road founder Ross Ulbricht in January 2025 and Binance founder Changpeng Zhao (CZ) in October 2025, Bankman-Fried remains excluded.
The President grouped the former FTX CEO with other high-profile figures he would not consider pardoning, reinforcing that Bankman-Fried’s fate will be determined solely by the judicial system.
The divergence signals that the White House views regulatory offenses and libertarian causes differently than customer theft. Bankman-Fried was convicted of stealing $8 billion in client funds, a crime Trump’s team reportedly views as "common fraud" rather than ideological overreach. This effectively neutralizes SBF’s defense narrative that he was a victim of political persecution.
Institutional Implications
For the broader market, the announcement removes a lingering volatility variable. Distressed asset firms purchasing FTX bankruptcy claims no longer need to factor in the wild card of a founder return or sentence commutation. The focus returns entirely to the bankruptcy estate’s liquidation process, where creditors are still awaiting final payouts.
