Sam Bankman-Fried (SBF), the former CEO of the bankrupt cryptocurrency exchange FTX, is becoming the focus of speculation about the possibility of receiving a pardon from the president.
This speculation revolves around his connections to the Democratic Party and early contributions to President Biden’s 2020 campaign.
Speculation About Amnesty for Sam Bankman-Fried
Found guilty on all seven fraud and embezzlement charges in November 2023, Bankman-Fried received a 25-year prison sentence. Federal prosecutors recommended a sentence of 40 to 50 years, while his defense team recommended only six years.
As one of the Democratic Party’s major donors, he provided $5.2 million to super PACs supporting Biden during the 2020 election cycle.
In fact, the founder of FTX is the second largest individual donor after Michael Bloomberg. These connections have raised concerns about whether political connections could influence clemency in his case.
Meanwhile, the discussion continued to gain momentum after Tesla CEO Elon Musk commented on social networks on this topic, saying he would be “shocked” if Sam Bankman-Fried was not pardoned.
These statement Musk’s actions have fueled lingering suspicions of favoritism, especially in light of past controversial pardons under President Joe Biden.
“Sam Bankman-Fried used more than $100 million in stolen client funds to contribute to political campaigns. Let’s see how he was pardoned. 100% Biden,” write Jason Williams.
Biden’s recent decision suggests that he is not afraid to make bold decisions when he leaves office. For example, Michael Conahan, a former Pennsylvania judge involved in the “child abductor bribery” scandal, has receive amnesty 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 other cases in December, raising worries about potential leniency in high-profile cases.
FTX’s Leniency Towards Associates Is Surprising
The handling of other figures involved in the collapse of FTX has also drawn public criticism. Caroline Ellison, former CEO of Alameda Research, who cooperated with prosecutors, received only a two-year sentence.
What’s most surprising is that Gary Wang, who wrote the code that allowed Alameda to siphon $11 billion from customer funds, avoided detention altogether. Critics say this approach could encourage would-be criminals to cooperate to avoid harsher penalties.
Meanwhile, Polymarke reported a sharp increase in the likelihood of Bankman-Fried being pardoned. After Musk’s comments, the odds increased from 4% to 8%.
Additionally, the FTT Token price increased almost immediately following these speculations on Monday.
The collapse of FTX remains a serious problem for creditors and the cryptocurrency industry. The company’s Chapter 11 reorganization plan, approved by the court, is scheduled to take effect on January 3, 2025.
As speculation over a pardon intensifies, debate highlights the correlation between political influence, judicial justice and the lingering impact of one of the biggest financial frauds in history. history.
