Sam Bankman-Fried, the former CEO of FTX who is currently serving a 25-year prison sentence, has formally submitted a presidential pardon request to the U.S. Justice Department’s Office of the Pardon Attorney. According to reported details, the filing seeks a pardon after completion of his sentence. Even though the White House had previously indicated that Donald Trump had no intention of pardoning him, the development quickly triggered speculation across the crypto market.
Pardon process begins, but political odds remain slim
Bankman-Fried, now 34 years old, was sentenced in 2024 after being convicted on seven felony counts, including the misuse of billions of dollars in customer funds. Reports said he and his team have been actively pursuing executive clemency during Trump’s second term, a period in which presidential pardon powers have reportedly been used frequently. His parents have also been lobbying on his behalf, while Bankman-Fried himself has posted supportive remarks about Trump on X and argued that FTX customers have been repaid in excess.
Still, the political path appears difficult. Prior White House statements have been clear that Trump does not intend to pardon the disgraced crypto executive. That means the formal submission of the request does not necessarily change the broader outlook, and many observers continue to view the chances of success as low.
FTT rallies on speculation despite weak fundamentals
While the legal and political prospects remain uncertain, the market reaction was immediate. FTT, the native token of the collapsed FTX exchange, has long been viewed as an asset with little remaining utility and continuing exposure to bankruptcy-related risks. Even so, traders piled in after the pardon news surfaced, producing a sharp, headline-driven rally.
Market data showed FTT climbing from around $0.23 to a high near $0.395 within 24 hours, marking a daily gain of roughly 52% to 66% and setting a one-month high. Daily trading volume also surged into the tens of millions of dollars, underscoring the intensity of speculative interest.
Analysts warned that this type of news-fueled move can be highly unstable. In the case of FTT, where underlying utility and fundamental support remain severely impaired, the rally is more likely to reflect short-term speculation than any material change in value. Investors are therefore being cautioned to watch for elevated volatility and the risk of sharp reversals.