The Senate passed a resolution on Wednesday stating that Sam Bankman-Fried should receive no executive clemency under any circumstances, rebuking the FTX founder's request for President Donald Trump to commute or pardon his 25-year sentence. The measure, S. Res. 772, cleared by unanimous consent and was sponsored by Senators Cynthia Lummis and Ruben Gallego. The resolution responds to Bankman-Fried's formal pardon application filed with the Justice Department on June 8, days before the senators introduced their measure on June 17. The nonbinding resolution affirms the Senate's commitment to the rule of law and the integrity of the United States financial system, following Bankman-Fried's November 2023 conviction on seven counts related to what prosecutors described as one of the largest financial frauds in U.S. history.
Senate Passes Resolution Opposing Bankman-Fried Clemency
The Senate adopted S. Res. 772 by unanimous consent, a procedure that adopts a resolution when no senator objects. The resolution expresses the sense of the Senate that Bankman-Fried should receive neither a pardon nor a commutation. Senators Cynthia Lummis, a Wyoming Republican, and Ruben Gallego, an Arizona Democrat, sponsored the measure. The two serve as the top Republican and top Democrat on the Senate Banking Committee's digital assets subcommittee.
The text of the resolution states that Bankman-Fried's 25-year sentence "reflects the extraordinary scale and deliberateness of his crimes, his lack of remorse, and the catastrophic harm inflicted upon millions of victims." Lummis said when she and Gallego introduced the resolution, "He had his day in court." Gallego's statement closed with four words: "Keep him locked up."
The resolution is nonbinding and does not limit the president's constitutional power to grant clemency.
Bankman-Fried Files Pardon Application After Completion of Sentence
Bankman-Fried, 34, filed his petition on June 8. His application seeks a "pardon after completion of sentence," a form of clemency that would not erase his conviction but would restore civil rights such as voting and jury service and lift barriers to licensing, employment, and housing after he leaves prison. He is not eligible for release until around 2044.
Trump said in a January interview that he had no intention of pardoning Bankman-Fried. During his second term the president has granted clemency to other figures tied to crypto and to online markets, including Binance founder Changpeng Zhao and Silk Road creator Ross Ulbricht, along with other white-collar offenders.
Court Convicts Bankman-Fried on Seven Fraud Counts
A jury convicted Bankman-Fried in November 2023 on seven counts tied to the collapse of FTX, a case prosecutors described as one of the largest financial frauds in U.S. history. American customers lost more than $8 billion. A judge sentenced him to 25 years in prison in 2024.
FTX Collapse Traced to Customer Fund Misappropriation
Bankman-Fried ran two companies at the same time. FTX was a crypto exchange, which holds customer money the way a broker does and is not supposed to spend it. Alameda Research was a trading firm he owned.
He moved billions of dollars in FTX customer deposits to Alameda, which used the money for trades, venture investments, political donations, and Bahamian real estate. FTX's software exempted Alameda from the rules that would have forced it to cover its losses like any other trader.
The arrangement came apart once Alameda's balance sheet was found and reported that much of what the firm counted as assets was FTT, a token FTX had created and could issue at will. The collateral behind Alameda was, in effect, an asset its sister company had invented. The exchange Binance said within days that it would sell its FTT holdings, and the price of the token dropped.
Customers moved to withdraw their deposits, and FTX could not return the money because it was no longer there. The exchange filed for bankruptcy on Nov. 11, 2022.
CoinDesk was the first to report on FTX's dubious balance sheets.
FAQ
What did the Senate vote on regarding Sam Bankman-Fried?
The Senate passed resolution S. Res. 772 on Wednesday by unanimous consent, stating that Sam Bankman-Fried should receive no executive clemency under any circumstances. The resolution was sponsored by Senators Cynthia Lummis and Ruben Gallego and expresses the Senate's commitment to the rule of law and integrity of the United States financial system.
Why did Sam Bankman-Fried file a pardon application?
Bankman-Fried filed his pardon petition on June 8, seeking a "pardon after completion of sentence" that would restore civil rights such as voting and jury service and lift barriers to licensing, employment, and housing after he leaves prison. He is not eligible for release until around 2044 following his 25-year sentence for seven fraud counts related to the FTX collapse.
How much money did FTX customers lose in the collapse?
American customers lost more than $8 billion in the FTX collapse. A jury convicted Bankman-Fried in November 2023 on seven counts tied to the collapse, which prosecutors described as one of the largest financial frauds in U.S. history. FTX filed for bankruptcy on Nov. 11, 2022.
