Embattled former crypto executive Sam Bankman-Fried considers launching a new cryptocurrency after his sentencing. Bankman-Fried, linked to the collapse of crypto exchange FTX, is serving a 25-year jail term for his role in the saga and losses suffered by investors.
Bankman-Fried Hopes for a Presidential Pardon
The New York Magazine shed light on certain aspects of SBF’s life in prison, including plans when he regains freedom. While exploring political routes to spend less time in jail, he joked with fellow inmates about the success of a new coin.
According to the Magazine, Bankman-Fried told inmate David Bunevacz that a serious business would need between $50 million and $100 million in capital, adding that he would start a new coin. He added that “everyone will jump on it,” though it was said as a joke because people might not accumulate the assets.
At the moment, he takes medication for ADHD and clinical depression while on a vegan diet, the magazine reported. SBF maintains his innocence in public statements despite the events that unfolded and the subsequent trial.
The statement on floating a new crypto sparked a conversation about the previous incident. Crypto users hinted at the likelihood of mass adoption because of the FTX implosion. In Q4 2022, FTX, the second-largest centralized exchange by trading volume at the time, collapsed, resulting in billions in losses.
 
Prosecutors accused Bankman-Fried of diverting billions of investor funds to sister company Alameda Research. The trial brought the commingling-of-funds narrative to the fore, shaping current regulations for crypto-related companies.
Aside from the loss of assets, the FTX implosion crashed the market and ushered in a bear phase that stretched until Q2 2023. Furthermore, it tightened industry regulations, spiking bottlenecks as authorities cited “investor protection” in most cases.
Bankman-Fried formally applied for a presidential pardon on June 8 after Donald Trump previously said he didn’t plan to grant him one. However, odds on Polymarket for a pardon before 2027 are now 14%, almost double the previous mark.
Last week, the FTX founder lost his appeal to overturn his conviction. This means a political move is more likely the most reasonable option for Bankman-Fried.
“While he was publicly reassuring customers, investors and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investment,” Judge Barrington Parker wrote for the Appeal panel.
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