TL;DR
- Sam Bankman-Fried will be released from prison in December 2044, more than four years before completing his 25-year sentence.
- The reduction is due to good conduct, participation in prison programs, and time served before sentencing.
- The FTX fraud diverted $11 billion from customers to Alameda Research, triggering a historic collapse in the crypto market.
Sam Bankman-Fried, the former head of FTX, is set to be released before serving his full sentence. Although he was sentenced to 25 years in March 2024 for a massive cryptocurrency fraud scheme, the U.S. Bureau of Prisons has updated his projected release date to December 2044. This means he’ll spend just under 21 years behind bars, cutting more than four years off his original sentence.
The reduction is based on two main factors. First, the prison system allows up to 54 days off per year for good conduct. Additionally, inmates can shorten their time by completing certain prison programs. On top of that, Bankman-Fried was incarcerated for a period before sentencing, after violating the conditions of his bail by leaking private writings from Caroline Ellison, the former head of Alameda Research.
Sam Bankman-Fried Left the Crypto Industry on the Brink
The FTX case became one of the most severe scandals in crypto history. Investigations revealed that Bankman-Fried and his inner circle funneled billions of dollars from FTX customers into Alameda Research, the hedge fund he also controlled. The scheme, valued at around $11 billion, left thousands of people locked out of their funds and triggered a chain reaction across the crypto market.
After being convicted of seven counts of fraud and conspiracy, Bankman-Fried was initially sent to the Metropolitan Detention Center in Brooklyn, known for its harsh conditions. He was later transferred to FCI Terminal Island, a low-security prison in California that holds about 850 inmates.
As for Caroline Ellison, who cooperated with authorities, she was sentenced to two years, with six months already cut from her time under the same reduction rules. She’s now scheduled for release in May 2026.
