- Rumors of a presidential pardon for FTX’s founder have emerged
- Fluctuating odds and public speculation continue to surround the potential pardon
Amidst plans to reimburse 119% of claimed value to nearly all former FTX users, speculations surrounding Sam Bankman-Fried’s potential fate have intensified. In fact, there are now rumors of a possible presidential pardon from Joe Biden.
What are the rumors circulating about the FTX founder?
Bankman-Fried, the disgraced former CEO of the now-defunct FTX exchange, was previously expected to face up to 25 years in prison for his role in the exchange’s collapse. However, with his legal team actively seeking a reduced sentence, the upcoming bankruptcy proceedings in January 2025 are set to be pivotal.
Here, it’s worth noting that the U.S. government has pushed for a sentence ranging from 40 to 50 years. Meanwhile, his defense has argued for just six.
Additionally, Bankman-Fried’s strong financial support for the Democratic Party has fueled speculations that his political connections might sway the outcome here.
Elon Musk weighs in
Remarking on the same, Wall Street Mav posted on X and noted,
“Guess who might get an early pardon from President Biden.”
In the post, along with a question about potential political connections, images of Bankman-Fried and President Joe Biden were shared. It further 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 will be shocked if this doesn’t happen.”
Polymarket odds
Following Musk’s comment on a potential pardon for Bankman-Fried, Polymarket saw a 9% surge in the odds of that happening, rising from 4% to 13%. Nonetheless, the latest update showed a decline, with the odds at 7% at press time.
This fluctuation highlighted the uncertainty surrounding the rumors, leaving the outcome of SBF’s fate open to speculation. In fact, President Biden has not given any signs of granting a pardon to Bankman-Fried.
And yet, public concerns remain high, especially given the recent pardon of his son, Hunter Biden, just weeks ago—contradicting previous promises.
Additionally, Nishad Singh, former Engineering Director of FTX, avoiding a prison sentence in lieu of substantial cooperation has further heightened concerns around accountability and regulatory oversight in the cryptocurrency space.
Impact on the crypto space
The speculation surrounding a potential presidential pardon for Sam Bankman-Fried highlights the broader challenges facing the cryptocurrency space. As scams and hacks continue to rise, it is increasingly important for regulators to adopt a cautious and comprehensive approach to handling such cases.
Additionally, the need for a fair and balanced regulatory framework becomes evident, one that supports the industry’s growth while addressing its inherent risks.
With Donald Trump’s return to the presidency and the possible appointment of Paul Atkins as the next SEC chair, there is hope that the cryptocurrency space may receive more favorable treatment.
However, concerns persist, especially given Biden’s previous pardon of his son, which raises questions about the future of regulatory oversight in the industry.
