As Sam Bankman-Fried’s legal troubles, the founder of the collapsed cryptocurrency exchange FTX, continue to unfold, speculation is mounting over the possibility of a presidential pardon.
Bankman-Fried, currently serving a 25-year sentence for his involvement in the massive financial collapse of FTX, has garnered significant attention due to the leniency already shown toward him by the U.S. Department of Justice (DoJ).
With ties to the Democratic Party, particularly through his substantial donations to President Joe Biden’s campaign, the question arises: could the embattled crypto mogul receive a pardon from the sitting President?
Recent events involving Hunter Biden have fueled the speculation surrounding a potential pardon for Sam Bankman-Fried. Earlier this month, Hunter Biden was granted a pardon after facing two federal charges related to gun ownership and tax violations.
Despite public controversy, the decision to pardon Hunter Biden has led some to believe that Sam Bankman-Fried could also receive a similar fate. President Biden defended the pardon, stating that Hunter was targeted politically, a rationale that could be applied to Bankman-Fried’s case.
While the Hunter Biden pardon has drawn criticism, it is important to note that a presidential pardon is well within the President’s constitutional rights. This precedent has fueled the fire of those who suggest that Bankman-Fried’s connections to the Biden campaign and his previous philanthropic donations to Democratic causes may influence the decision.
The DOJ’s Leniency Toward SBF
In addition to the Hunter Biden case, Bankman-Fried has already benefited from certain legal leniencies. For instance, the U.S. Department of Justice dropped campaign finance charges against him, marking the first significant advantage Bankman-Fried has received from the Biden administration.
This move has raised concerns in the industry, with critics, including crypto advocate John Deaton, questioning whether the Biden administration is offering Bankman-Fried special treatment due to his political ties.
FTX’s Bankruptcy and the Road Ahead
The collapse of FTX in November 2022, which resulted in an $8 billion shortfall, has led to a lengthy and ongoing bankruptcy process.
The company is set to begin its creditor repayment process on January 3, 2024, after over two years of attempts to recover funds. While Sam Bankman-Fried, Caroline Ellison, and Ryan Selkis face various jail sentences, it remains unclear whether any potential pardon would also apply to them.
