Sam Bankman-Fried, the Disgraced Founder of FTX, Has Had His 25-Year Prison Sentence Reduced

Sam Bankman-Fried (SBF), the former CEO of the collapsed cryptocurrency exchange FTX, has received a notable reduction in his prison sentence.

Sam Bankman-Fried, the disgraced former CEO of FTX, will have his 25-year prison sentence reduced by more than four years due to good conduct and program participation.

Sam Bankman-Fried’s (SBF) 25-year prison sentence for orchestrating an $11 billion fraud has been reduced by over four years.

The former FTX CEO will now be released in December 2044, according to reports.

Sam Bankman-Fried’s (SBF) 25-year prison sentence for orchestrating an $11 billion fraud has been reduced by more than four years.

The disgraced FTX founder’s sentence has been cut due to accumulated “Good Conduct Time” and his participation in prison programs.

This development follows SBF’s conviction in 2023 on seven counts of fraud and conspiracy related to the misuse of customer funds between FTX and its sister trading firm, Alameda Research.

SBF is serving his sentence at a low-security federal prison in San Pedro, California, after an initial stint at Brooklyn’s Metropolitan Detention Center. His good behavior and engagement in rehabilitative programs, such as educational courses and work assignments, have earned him a sentence reduction under federal prison guidelines.

This reduction is a standard practice for inmates who demonstrate compliance and self-improvement. However, the news has sparked debates about the severity of his punishment, given the scale of the financial devastation caused by FTX’s collapse in November 2022.

The cryptocurrency exchange’s bankruptcy left thousands of users with significant losses.

SBF’s sentence reduction was announced earlier this week and has since sparked a range of reactions within the crypto community and beyond.

SBF’s legal team has continued to appeal his conviction, with a recent filing in April 2025 arguing for a retrial based on alleged judicial bias.

Adding to the legal developments, Caroline Ellison, former CEO of Alameda Research and a key witness in SBF’s trial, also received a sentence reduction.

Sentenced to two years in 2024, Ellison is now projected to be released in May 2026 after similar good conduct credits.

Meanwhile, SBF’s parents, Joe Bankman and Barbara Fried, have been lobbying for a presidential pardon, according the New York Times.

These efforts follow reports of the family reaching out to Trump associates. However, no pardon has been granted as of now.

These endeavors underscore the ongoing legal and public relations battles surrounding SBF, whose actions have left a lasting impact on the cryptocurrency industry.