SBF begins 25-year sentence for FTX fraud as family lobbies Trump for pardon amid crypto industry fallout - IcoHolder.

Once hailed as a crypto prodigy, Sam Bankman-Fried, known as SBF, is now serving a 25-year prison sentence for orchestrating one of the largest frauds in cryptocurrency history. The collapse of his FTX exchange, which wiped out $11 billion, shattered investor confidence and sent ripples throughout the digital asset world. In March 2024, a jury convicted SBF on seven counts of fraud and conspiracy, revealing how he and his inner circle diverted customer funds from FTX to his trading firm, Alameda Research, leading to the devastating meltdown.

SBF began serving time at Brooklyn’s Metropolitan Detention Center under harsh conditions, including power outages and inadequate meals, before being transferred to a lower-security prison in California. Despite the lengthy sentence, federal rules on good behavior, participation in rehabilitation programs, and pre-sentencing jail time could reduce his time behind bars to just under 21 years. Meanwhile, Caroline Ellison, former CEO of Alameda and SBF’s ex-girlfriend, received a much lighter two-year sentence after cooperating with prosecutors.

Amidst these developments, reports have emerged that SBF’s family is lobbying former President Donald Trump for a pardon. Trump’s previous clemencies of crypto figures fuel speculation, but SBF’s lack of support from the crypto community and his political ties make such a pardon unlikely. As SBF’s legal options narrow, his case stands as a stark reminder of the risks and failures that have shaken the cryptocurrency industry.