Sam Bankman-Fried, the former CEO of collapsed cryptocurrency exchange FTX, has seen his prison sentence effectively reduced by over four years.
The change follows recalculations made by the US Bureau of Prisons (BOP), taking into account good behavior and other standard sentence reduction mechanisms.
Originally sentenced to 25 years in March 2024, Bankman-Fried was found guilty on seven counts of fraud and conspiracy tied to a massive financial scandal involving the mismanagement of customer assets through Alameda Research, a hedge fund he also controlled.
Prosecutors alleged the scheme cost investors approximately $11 billion and cited evidence of widespread misuse of client funds.
Sentence Adjustment and Incarceration Details
Following his conviction, Bankman-Fried was initially detained at the Metropolitan Detention Center in Brooklyn, a facility known for its austere conditions. Reports later confirmed he shared a dormitory-style room with other inmates, including entertainer Sean "Diddy" Combs, during his early days in custody.
The former crypto executive also gave a surprise interview with political commentator Tucker Carlson, which drew public attention and reportedly led to the resignation of his crisis communications advisor.
He was eventually transferred to FCI Terminal Island in San Pedro, California, a low-security facility housing around 850 male inmates. The Bureau of Prisons updated its records to reflect a projected release date of December 14, 2044, approximately 20 years and nine months after his sentencing.
The reduction from his original term is attributed to standard federal sentence credits, including “Good Conduct Time,” which awards inmates up to 54 days per year for compliance with institutional rules.
Conditions for Reduction and Wider Case Developments
In addition to good conduct credits, inmates in the federal system may reduce their time through participation in rehabilitative programs or by receiving credit for pre-sentencing incarceration.
Bankman-Fried was jailed two months ahead of his trial following a bail revocation, after he was accused of leaking private writings belonging to Caroline Ellison, his former girlfriend and former CEO of Alameda Research. That pretrial period is expected to count toward his total time served.
Ellison, who cooperated with investigators during Bankman-Fried’s trial, was sentenced to two years in prison for her role in the fraud. Her projected release date was also reduced through the same sentence adjustment mechanisms, with roughly six months shaved off her initial term.
Bankman-Fried’s legal team has so far not commented publicly on the revised sentence. His appeal is reportedly ongoing.
