Disgraced FTX Founder Praises Trump as Pardon Speculation Grows
Why Is Bankman-Fried Publicly Backing Trump Now?
Sam Bankman-Fried has intensified his public praise of US President Donald Trump while criticizing former President Joe Biden, a shift that comes just days after Caroline Ellison, the former chief executive of Alameda Research, was released from federal custody. Ellison served 440 days in prison for her role in the 2022 collapse of FTX.
In a post on X on Friday, Bankman-Fried said that “@realdonaldtrump is right on crypto,” adding to a series of comments that many observers see as an effort to align himself with the current administration. The remarks follow his February 2025 interview with the New York Sun and a March appearance alongside political commentator Tucker Carlson, both of which revived public attention around his case.
The timing has fueled speculation that the former FTX founder is attempting to position himself favorably in the event of a potential presidential pardon. Bankman-Fried is currently serving a 25-year prison sentence for fraud and related charges tied to the collapse of the crypto exchange.
Investor Takeaway
Attacks on Biden and Praise Beyond Crypto
Bankman-Fried’s recent comments extend well beyond digital assets. He praised Trump’s arrest of Venezuelan President Nicolás Maduro, describing the move as “smart, gutsy, and pro-democracy.” The remarks contrast sharply with his criticism of the previous US administration, which he had once supported with substantial political donations.
“All the world leaders I met were fed up with Biden,” Bankman-Fried said, adding that the former president “bungled crypto.” He argued that the outcome was not inevitable, saying there was “plenty in the party had reasonable thoughts,” but faulted Biden for appointing Gary Gensler as chair of the Securities and Exchange Commission.
Gensler pursued an aggressive enforcement-led approach to crypto oversight and stepped down in January 2025, shortly before Trump’s inauguration. His departure has since been followed by a change in tone at the SEC under new leadership.
Regulatory Backdrop Has Shifted Under Trump
Paul Atkins, who was sworn in as SEC chair by Trump in April 2025, is widely viewed by the crypto industry as more receptive to digital asset markets than his predecessor. That shift has reinforced expectations that the regulatory climate around crypto could soften, even as past enforcement cases continue to work their way through the courts.
For Bankman-Fried, the regulatory context matters less for day-to-day operations and more for how his case is viewed politically. While a pardon would not reverse civil claims or erase the collapse of FTX, it would dramatically alter the legal consequences he faces.
The contrast between his earlier support for Democratic candidates and his current praise of Trump has drawn attention. Some see the shift as pragmatic, given the current administration’s stance on crypto and executive authority over pardons. Others view it as unlikely to sway outcomes tied to a case involving one of the largest financial frauds in recent history.
Investor Takeaway
What Are the Odds of a Pardon?
Market-based expectations offer a more skeptical view. Traders on the crypto prediction platform Polymarket currently assign a 17% chance that Trump will pardon Bankman-Fried before 2027. Those odds suggest that, despite the renewed media presence and supportive rhetoric, most participants see a pardon as unlikely.
Bankman-Fried was extradited from the Bahamas after the collapse of FTX in November 2022 and later convicted on seven felony counts in November 2023. A federal judge sentenced him to 25 years in prison in March 2024. In November 2025, he filed an appeal and is awaiting a decision from the US Court of Appeals for the Second Circuit.
Ellison’s release has added a new layer to public discussion around accountability and cooperation in the FTX case. As a cooperating witness, her shorter sentence and early release stand in contrast to Bankman-Fried’s punishment, a comparison that has resurfaced alongside his recent statements.
How Markets Are Reading the Situation
For crypto markets, the episode is less about Bankman-Fried personally and more about what it reveals regarding political risk and enforcement legacy. The collapse of FTX remains a reference point for regulators and lawmakers when discussing consumer protection, exchange oversight, and custody rules.
While a pardon would be headline-grabbing, it would not change the broader direction of market structure reforms already underway. Instead, it would highlight the degree to which individual cases can become entangled with shifting political narratives.
