Sam Bankman-Fried (SBF), the former CEO of failed crypto exchange FTX, is at the center of speculation over a possible presidential pardon.
The rumors are based on his ties to the Democratic Party and his early donations to President Biden's 2020 campaign.
Speculation 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 sentence of 40 to 50 years, while his defense argued for six years.
As a major donor to the Democratic Party, 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. Those connections have raised concerns about whether political ties could influence clemency in his case.
Meanwhile, the debate has gained momentum after Tesla CEO Elon Musk commented on the matter on social media, suggesting he would be “shocked” if Sam Bankman-Fried was not pardoned.
Musk's comments added to existing skepticism about favoritism, especially in light of controversial pardons passed under President Joe Biden.
Sam Bankman-Fried used over $100 million in stolen client funds to donate to political campaigns. Watch him get pardoned. 100% Biden, writes Jason Williams.
Biden’s recent decisions suggest he’s not afraid to make bold decisions after leaving office. For example, Michael Conahan, a former Pennsylvania judge embroiled in the “kids-for-cash” scandal, was granted clemency last week.
Conahan was sentenced to more than 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 possible leniency in high-profile cases.
Leniency for FTX employees raises suspicions
The treatment of other figures in the FTX collapse has also drawn criticism. Former Alameda Research CEO Caroline Ellison, who cooperated with prosecutors, received just a two-year sentence.
Most surprisingly, Gary Wang, who wrote the code that allowed Alameda to embezzle $11 billion in customer funds, avoided prison altogether. Critics argue that this approach may encourage future offenders to cooperate as a means of escaping harsher penalties.
Meanwhile, Polymarke reported a sharp increase in the likelihood of a Bankman-Fried pardon. Following Musk’s comments, the odds jumped from 4% to 8%.
Furthermore, the price of the FTT token rose almost immediately after these speculations on Monday (22).
Polymarket odds on Sam Bankman-Fried pardon. Source: Polymarket
FTX’s collapse remains a significant issue for creditors and the crypto industry. The company’s court-approved Chapter 11 reorganization plan is scheduled 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 lasting impact of one of the largest financial frauds in history.
The article Could Scammer Sam Bankman-Fried Get a Pardon from Biden? appeared first on BeInCrypto Brazil.
