Sam Bankman-Fried Will Be Released About Four Years Earlier: Report

Sam Bankman-Fried, the mastermind behind the cataclysmic downfall of his company, FTX, will be released from jail sooner than expected. According to a recent report quoting the United States’ Federal Bureau of Prisons (BOP), the disgraced FTX founder will be released in 2044, erasing four and a half years from his 25-year prison sentence.

Why the Sentence Reduction?

The BOP explained that prison inmates’ release dates are calculated by factoring in programs like Good Conduct Time. This provision allows prisoners with sentences above a year to earn up to 54 days for each year of their sentences.

Doing the math, SBF’s release date has been moved to December 2044, about four and a half years earlier. This implies that the FTX founder partook in these programs that allow inmates to earn time off for good behavior and participation in rehabilitation programs.

He is currently being held at a low-security prison in California.

Sam Bankman-Fried’s 25-Year Sentence

SBF’s troubles date back to 2022, when FTX collapsed. Subsequent investigations revealed that he had secretly used customer funds to support his trading company, Alameda Research.

The money, meant to be safely held, was instead used for risky investments, luxury real estate, and significant political donations. Bankman-Fried was arrested in the Bahamas and later extradited to the U.S. to face multiple charges, including fraud and money laundering.

In March 2024, he was found guilty of seven criminal charges. Prosecutors said he misused billions worth of customer money, leading to significant financial losses. A U.S. judge sentenced him to 25 years in prison and ordered him to give up $11 billion in assets.

Shortly after Donald Trump’s inauguration as the U.S. president, SBF’s parents sought a presidential pardon for their son. However, no report confirmed that this was approved.

Meanwhile, others involved in the collapse of FTX have also been sentenced. Caroline Ellison, the former co-CEO of Alameda Research, received a two-year prison sentence for her role. She worked closely with investigators and provided key testimony against SBF.

Under a new CEO, FTX is preparing to repay its main creditors. The bankruptcy team has announced it will begin distributing about $11.4 billion to those who lost money when the exchange collapsed. These repayments are a major step toward compensating victims.

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