Sam Bankman-Fried (SBF), the former CEO of the bankrupt crypto exchange FTX, is at the center of speculation about a possible presidential pardon.
The rumors are based on his links to the Democratic Party and his early donations to President Biden’s 2020 campaign.
Outrageous Speculations about Sam Bankman-Fried’s Pardon
Convicted on all seven counts of fraud and embezzlement in November 2023, Bankman-Fried received a 25-year prison sentence. Federal prosecutors had sought a term of 40 to 50 years while his defense team argued for six years.
As one of the Democratic Party’s major donors, he provided $5.2 million to pro-Biden super PACs during the 2020 election cycle.
In fact, the FTX founder was the second-largest individual donor after Michael Bloomberg. These connections have raised concerns about whether political ties could influence leniency in his case.
Meanwhile, the discussion gained momentum after Tesla CEO Elon Musk commented on the topic via social media, suggesting he would be “shocked” if Sam Bankman-Fried is not pardoned.
Musk’s remarks added to existing skepticism about favoritism, particularly in light of past controversial pardons under President Joe Biden.
“Sam Bankman-Fried used over $100 million in stolen customer funds to donate to political campaigns. Watch him get pardoned. 100% Biden,” wrote Jason Williams.
Biden’s recent decisions suggest that he is not afraid to make outrageous decisions as he leaves office. For instance, Michael Conahan, a former Pennsylvania judge involved in the “kids-for-cash” scandal, received clemency last week.
Conahan was sentenced to over 17 years for accepting bribes to send minors to detention centers. Biden commuted Conahan’s sentence along with 1,500 others in December, raising concerns about potential leniency in high-profile cases.
Leniency for FTX Collaborators Raises Eyebrows
The handling of other figures in the FTX collapse has also sparked criticism. Former Alameda Research CEO Caroline Ellison, who collaborated with prosecutors, received only a two-year sentence.
Most surprisingly, Gary Wang, who wrote code that enabled Alameda to siphon $11 billion in customer funds, avoided jail time entirely. Critics argue this approach may encourage future offenders to cooperate as a means to escape harsher penalties.
Meanwhile, Polymarke reported a sharp rise in the probability of a pardon for Bankman-Fried. Following Musk’s comments, the odds jumped from 4% to 8%.
Also, the FTT token price jumped nearly following these speculations on Monday.
The collapse of FTX remains a significant issue for creditors and the crypto industry. The company’s Chapter 11 reorganization plan, approved by the court, is set to take effect on January 3, 2025.
As speculation about a pardon intensifies, the debate highlights the intersection of political influence, judicial fairness, and the lingering impact of one of the largest financial frauds in history.
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