Former FTX CEO Sam Bankman-Fried is rumored to be in line for a Presidential pardon before January 20. The rumors became rife after Wall Street Mav hinted in a tweet about a presidential pardon going the way of one of the Democrat’s top donors. Things started to become clear when billionaire Elon Musk claimed he’d be shocked if it didn’t happen.
Bankman-Fried is currently serving time in a federal prison in Mendota, serving his 25-year sentence for his part in the collapse of the crypto firm. His sentence has become a case where political inclinations are in the works, and now with a pardon, it is moving towards the sentimental angle. Before FTX collapsed, SBF was on a high horse, building the exchange from 2019, and in two years, the company’s valuation had climbed to $32 billion.
Sam Bankman-Fried and the hope of a presidential pardon
FTX’s collapse came as fast as its rise, leaving customers to trigger a liquidity crisis through withdrawals on that fateful day in 2022. Within days, the company filed for Chapter 11 Bankruptcy, leaving SBF running helter-skelter. A while later, SBF was arrested in the Bahamas and extradited to the United States upon request, leading to a very long legal proceeding where a lot of secrets were revealed.
According to reports, running a crypto exchange wasn’t his only forte, as he ran with the high and mighty on the political scene. He made several political donations, making more than $70 million in donations over 18 months. More than half of that, $40 million, went to Democrats, coming only second to George Soros. He also didn’t forget the Republicans, using dark money to make donations to avoid scrutiny, according to several sources.
Jail time and public reactions to the pardon
After his sentencing, SBF was sent to the Mendota federal prison in California. The facility provides medium and minimum housing, with enough security to keep prisoners safe. His lawyers are still on the road to an appeal, noting a discretion in the trial that violated his rights. Although appeals rarely succeed, SBF will be counting on having some years removed from his sentence.
However, not everyone is sold on a potential redemption arc for SBF. The general public, especially those who lost funds in FTX’s collapse see SBF as the bad man. The official charged with cleaning up SBF’s mess, John Ray, has repeatedly talked about the level of his action’s harm. Meanwhile, a recent survey shows that only 37% of the country’s population see him in a favorable light, with the others constituting people who do not care or are unaware.
However, 73% of those who followed his proceedings feel he should be behind bars. If Biden grants SBF a presidential pardon, critics would be angry, and a backlash would be inevitable. While most people might see it as a move to repay his efforts to the Democrats, the White House won’t be moved, seeing as persons are things that occur every time, usually with political ties.
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