Sam Bankman-Fried, the disgraced founder of the now-defunct crypto exchange FTX, has been transferred to a low-security federal prison in Los Angeles as he begins his 25-year sentence for orchestrating one of the most infamous financial frauds in cryptocurrency history.

According to the Federal Bureau of Prisons (BOP), Bankman-Fried is now housed at the Federal Correctional Institution (FCI) Terminal Island. Located at the port of Los Angeles, the facility holds more than 900 male inmates under low-security status. The relocation marks a new chapter for the former billionaire entrepreneur, whose dramatic rise and fall left a lasting impact on the global crypto market.

Before arriving at Terminal Island, Bankman-Fried had been held at the Metropolitan Detention Center in Brooklyn, New York, following his conviction in late 2023. In March 2025, he was temporarily moved to the Federal Transfer Center in Oklahoma City—a facility used to process inmates between locations. He was then briefly placed in a medium-security prison in Victorville, California, before being moved once more to Terminal Island, where he is expected to serve most of his sentence.

Bankman-Fried, once hailed as a crypto genius, was convicted on multiple felony counts, including wire fraud, securities fraud, and money laundering. Federal prosecutors accused him of misappropriating billions in customer funds from FTX to finance risky investments, political donations, and personal luxuries through his trading firm, Alameda Research. The mismanagement and deception ultimately led to FTX’s collapse in November 2022, which wiped out an estimated $8 billion in user assets and sent shockwaves throughout the crypto industry.

At its peak, FTX was one of the largest cryptocurrency exchanges in the world, with a valuation exceeding $30 billion. Bankman-Fried, known widely as “SBF,” was seen as a symbol of crypto’s future—frequently featured on magazine covers, invited to speak at elite conferences, and even lobbying in Washington. But his public image began to crumble when investigative reporting and whistleblower revelations exposed massive financial misconduct at FTX.

The crypto community and investors watched in disbelief as the company filed for bankruptcy and regulators stepped in. The scandal triggered a wave of scrutiny on other crypto firms and prompted calls for stronger regulation of the digital asset sector.

Bankman-Fried’s sentencing in March 2025 drew global attention. The judge, while acknowledging his contributions to technology and finance, ultimately determined that the scale of his fraud required a serious penalty. He was sentenced to 25 years in federal prison, with a projected release date in December 2044.

Despite the grim outcome, Bankman-Fried’s family is actively working to secure a reduction in his sentence. His parents, Joseph Bankman and Barbara Fried, both law professors at Stanford University, have reportedly reached out to individuals connected to former U.S. President Donald Trump in a bid for potential clemency. However, legal and political experts remain doubtful.

A crypto lobbyist interviewed by Fortune dismissed the possibility of a presidential pardon, calling the odds “near zero.” Public opinion surrounding the FTX collapse remains largely unsympathetic, especially given the significant financial harm caused to everyday investors and institutions alike.

Bankman-Fried’s placement in a low-security facility like FCI Terminal Island suggests that authorities consider him a non-violent offender. These types of prisons are typically less restrictive and provide more rehabilitation-focused environments, including educational and vocational programs. However, this does little to soften the reality of a long incarceration for the once-celebrated crypto figurehead.

As he begins his sentence far from the boardrooms and trading screens he once dominated, Bankman-Fried’s story remains a cautionary tale of unchecked ambition, regulatory loopholes, and the dangers of hero-worship in emerging tech industries. For the victims of FTX’s collapse and the broader crypto ecosystem, the consequences of his actions are still being felt—and likely will be for years to come.