Could former FTX CEO Sam Bankman-Fried, sentenced to 25 years in prison for fraud, benefit from a presidential pardon? This possibility, linked to its political connections, is sparking heated debate in the crypto community and beyond.
FTX: the controversy over the presidential pardon of SBF
In November 2023, Sam Bankman-Fried, founder of crypto platform FTX, was convicted of seven counts, including fraud and embezzlement, and sentenced to 25 years in prison. Despite this heavy sentence, rumors of a presidential pardon are emerging, fueled by his links with the Democratic Party.
During the 2020 election cycle, Bankman-Fried contributed $5.2 million to pro-Biden political action committees, becoming the second-largest individual donor after Michael Bloomberg. These contributions give rise to suspicions of potential preferential treatment.
Elon Musk, CEO of Tesla, inflamed the debate on social media by declaring that he would be “shocked” if Bankman-Fried did not obtain a presidential pardon. This statement quickly influenced the market: the price of the FTT token, associated with FTX, jumped, and the odds of a pardon on the Polymarket platform doubled, from 4% to 8%.
President Biden's recent clemency decisions reinforce this speculation. For example, the commutation of sentence granted to Michael Conahan in the “kids for money” case illustrates a pattern of controversy in these decisions, fueling questions about a pardon for Bankman-Fried.
Judicial treatment that raises questions
The disparity in sentences between the different players in the FTX affair raises questions in the crypto community. Caroline Ellison, former CEO of Alameda Research, received only two years in prison after collaborating with the courts, while Gary Wang, despite being responsible for the code that allowed the embezzlement of 11 billion dollars, avoided any prison sentence.
These sanctions, perceived as lenient compared to the 25-year sentence imposed on SBF, fuel the debate on the fairness of the judicial system. Critics worry that such an approach could set a dangerous precedent, encouraging future fraudsters to gamble on the system's leniency in exchange for their cooperation.
The situation remains particularly sensitive as FTX's reorganization plan is due to come into effect on January 3, 2025, leaving creditors and the entire crypto industry in suspense in the face of these unexpected developments.
In sum, the possibility of a presidential pardon for Sam Bankman-Fried raises profound questions about political influence and judicial fairness in the United States. This debate, which transcends the legal field, also reflects tensions within the crypto ecosystem, where some estimate that bitcoin could reduce the American debt by 35%. Regardless, this case will continue to capture the attention of the financial community and the general public.
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