FTX Case: Sam Bankman May Soon Receive a Presidential Pardon

The former CEO of FTX, Sam Bankman-Fried, sentenced to 25 years in prison for fraud, could he benefit from a presidential pardon? This possibility, linked to his political connections, sparks a lively debate within the crypto community and beyond.

FTX, the controversy over SBF’s presidential pardon

In November 2023, Sam Bankman-Fried, founder of the crypto platform FTX, was convicted on seven counts, including fraud and misappropriation of funds, and sentenced to 25 years in prison. Despite this heavy sentence, rumors of a presidential pardon are emerging, fueled by his ties to the Democratic Party.

During the 2020 election cycle, Bankman-Fried donated $5.2 million to pro-Biden political action committees, becoming the second-largest individual donor after Michael Bloomberg. These contributions raise suspicions of a potential favoritism.

Elon Musk, CEO of Tesla, stoked the debate on social media by stating that he would be “shocked” if Bankman-Fried did not receive a presidential pardon. This statement quickly influenced the market: the price of the FTT token, associated with FTX, surged, and the probabilities of a pardon on the Polymarket platform doubled, from 4% to 8%.

Recent decisions by President Biden regarding clemency reinforce these speculations. For example, the commutation granted to Michael Conahan in the “kids for cash” case illustrates a trend of controversy in such decisions, raising questions about a pardon for Bankman-Fried.

A judicial treatment that raises questions

The disparity in sentences among the various players in the FTX case raises questions within the crypto community. Caroline Ellison, former CEO of Alameda Research, received only two years in prison after cooperating with the authorities, while Gary Wang, responsible for the code that enabled the misappropriation of $11 billion, has avoided any prison sentence.

These sanctions, viewed as lenient compared to the 25-year sentence imposed on SBF, fuel the debate over the fairness of the judicial system. Critics are concerned that such an approach could create a dangerous precedent, encouraging future fraudsters to gamble on the leniency of the system in exchange for their cooperation.

The situation remains particularly sensitive as FTX’s reorganization plan is set to take effect on January 3, 2025, leaving creditors and the entire crypto industry in suspense regarding these unexpected developments.

In summary, the possibility of a presidential pardon for Sam Bankman-Fried raises profound questions about political influence and judicial fairness in the United States. This debate, which transcends the legal realm, also reflects the tensions within the crypto ecosystem. In any case, this matter will continue to captivate the attention of the financial community and the general public.