Amid plans to compensate 119% of the claimed value of almost all former FTX users, speculation surrounding the possible fate of Sam Bankman-Fried has intensified. In fact, there are now rumors of a possible presidential pardon from Joe Biden.
What are the rumors circulating about the founder of FTX?
Bankman-Fried, the disgraced former CEO of the defunct FTX exchange, was previously expected to face up to 25 years in prison for his role in the collapse of the exchange. However, with his legal team actively seeking a reduced sentence, the upcoming bankruptcy proceedings in January 2025 are set to be pivotal.
Here, it is worth noting that the US government pushed for a sentence of 40 to 50 years. Meanwhile, his defense argued for only six.
In addition, Bankman-Fried's strong financial support for the Democratic Party has raised speculation that its political connections could influence the outcome here.
Elon Musk weighs in
Note on the same, Wall Street MAF posted on X and noted,
“Guess who might get an early pardon from President Biden.”
The post, along with a question about possible political ties, shared photos of Bankman-Fried and President Joe Biden. It also highlighted Bankman-Fried’s status as the second-largest donor to the Democratic Party.
This revelation sparked a wave of reactions within the crypto community. Notable responses included one from Tesla CEO Elon Musk who shared his perspective on the situation and said,
“I would be shocked if it didn't happen.”
Polymarket Possibilities
After Musk commented on a potential Bankman-Fried pardon, Polymarket saw the odds of that happening jump 9%, from 4% to 13%. However, the latest update showed a decline, with the odds standing at 7% at press time.
This volatility has highlighted the uncertainty surrounding the rumors, leaving the outcome of SBF’s fate open to speculation. Indeed, President Biden has given no indication of granting a pardon to Bankman-Fried.
However, public concerns remain high, especially given the recent pardon of his son, Hunter Biden, just weeks ago — which contradicts previous promises.
Additionally, Nishad Singh, the former engineering director of FTX, avoided prison time instead of cooperating extensively, raising concerns about accountability and regulatory oversight in the crypto space.
Impact on the crypto space
Speculation surrounding a potential presidential pardon for Sam Bankman-Fried highlights the broader challenges facing the crypto space. As scams and hacks continue to rise, it is increasingly important for regulators to take a cautious and comprehensive approach to dealing with such cases.
In addition, the need for a fair and balanced regulatory framework becomes clear, one that supports the growth of the industry while addressing its inherent risks.
With Donald Trump returning to the presidency and the potential appointment of Paul Atkins as the next SEC chairman, there is hope that the crypto space will receive more favorable treatment.
However, concerns remain, especially given Biden's previous pardon of his son, raising questions about the future of regulatory oversight in the industry.