Sam Bankman-Fried, the founder of failed cryptocurrency exchange FTX, might get out of prison early. He could be free by December 2044, four years before his original sentence.
Bankman-Fried got 25 years in prison for a $11 billion fraud scheme. He was found guilty in 2023 of seven charges related to fraud and conspiracy. Now, he might get a reduced sentence due to good behavior.
Here’s what happened:
- Bankman-Fried was convicted of a huge fraud scheme and got 25 years in prison.
- He might get out early due to good behavior, with a possible release date of December 2044.
- Caroline Ellison, a key figure in the case, will also get out early, in May 2026.
- Bankman-Fried is looking into other options, like a presidential pardon or a new trial.
The FTX case was a big deal. It showed the weaknesses of centralized platforms and led to more regulation. Bankman-Fried diverted user funds to his private hedge fund, Alameda Research, to finance expansion plans and enrich himself.
How it all fell apart
FTX was once a top cryptocurrency exchange. But it all came crashing down when it was discovered that Bankman-Fried had misused user funds. He transferred money to Alameda Research to finance risky investments and make personal donations. This was a huge financial scandal.
After the trial, Bankman-Fried was moved to a low-security prison in California. His behavior in prison has been closely watched, and he’s been sharing a unit with famous music producer Sean “Diddy” Combs.
Good behavior and reduced sentences
The US Federal Bureau of Prisons says Bankman-Fried’s possible early release is due to his good behavior and participation in prison programs. He’s earned “Good Conduct Time,” which can reduce his sentence by up to 54 days per year.
Business Insider reported on the new estimated release date, highlighting that the federal prison system considers these reductions as part of the rehabilitation process. Bankman-Fried’s family is also seeking a presidential pardon from Donald Trump.
Caroline Ellison, the former CEO of Alameda Research, has also benefited from reduced sentences. She’ll be released in May 2026, after cooperating with prosecutors and providing key evidence in the trial against Bankman-Fried.