Sam Bankman-Fried, the disgraced CEO of defunct crypto exchange FTX, may leave prison more than four years early. His 25-year sentence for massive crypto fraud has been reduced to a release date of December 14, 2044. Good behavior credits, prison program participation, and two months in pre-sentencing detention reportedly earned this reduction. Meanwhile, Caroline Ellison, former Alameda Research CEO, is set for release in May 2026.
Sam Bankman-Fried’s Journey to Prison
Sam Bankman-Fried’s empire crumbled in November 2022 when FTX, a leading crypto exchange, collapsed amid fraud allegations. He was convicted in March 2024 on seven counts of fraud and conspiracy, defrauding investors and customers of billions. Prosecutors revealed he misappropriated $8 billion in customer funds, funneling them to Alameda Research for risky investments.
After his March 2024 sentencing, Sam Bankman-Fried was transferred from Brooklyn’s Metropolitan Detention Center (MDC) to the Federal Transfer Center (FTC) in Oklahoma City, and later to other facilities, partly due to an unauthorized video interview with political commentator Tucker Carlson on March 5, 2025. Conducted without Federal Bureau of Prisons (BOP) approval, the interview led to his placement in solitary confinement at MDC, as the BOP enforces strict rules on inmate communications.
Meanwhile, Ellison pleaded guilty to fraud and conspiracy, aiding Bankman-Fried’s $11 billion scheme. Her cooperation with prosecutors, including testifying against him, led to a reduced two-year sentence. She began serving at Danbury Federal Correctional Institution, with release expected in May 2026.
Presidential Pardon Likely?
Some notable figures who committed crypto-related crimes have even enjoyed a presidential pardon after being released from prison. For example, Ross Ulbricht was sentenced to life in prison without parole for his role in creating the Silk Road, a platform that facilitated the trade of illicit goods and services. However, after a long time in prison, he was released and granted a presidential pardon by President Donald Trump.
Three co-founders of the crypto exchange BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed— were also officially granted such pardons. This decision follows their guilty pleas to violations of the Bank Secrecy Act and reveals the complexities and ongoing challenges in regulating the rapidly changing virtual currency sector.
While sentence reductions and pardon talks persist, the judiciary aims to deter future violations. The FTX saga continues to shape regulations and public trust in digital currencies.
