Amidst discussions about refunding 119% of the declared value to almost all previous FTX clients, rumors about the potential fate of Sam Bankman-Fried have gained momentum. Speculations now suggest that Joe Biden might grant him a presidential pardon.
What is being said about the FTX founder?
Formerly the disgraced CEO of the now-closed FTX exchange, Bankman-Fried was anticipated to possibly face a maximum of 25 years behind bars for his involvement in the downfall of the exchange. However, as his legal team works on securing a reduced penalty, the upcoming bankruptcy proceedings in January 2025 are crucial.
It’s important to note that the U.S. government had recommended a sentence of 40 to 50 years, while his defense lobbied for just six years.
Moreover, Bankman-Fried’s significant financial contributions to the Democratic Party have led to suggestions that his political affiliations could influence the outcome of his case.
Elon Musk’s Perspective
Reflecting on this matter, Wall Street Mav shared a post on X platform, stating,
“Can you guess who might receive an early pardon from President Biden?”
The post featured images of Bankman-Fried and President Joe Biden, emphasizing Bankman-Fried’s status as the second-largest financial supporter of the Democratic Party.
This revelation generated various reactions within the cryptocurrency community. Tesla CEO Elon Musk, in particular, shared his opinion on the situation and commented,
“I will be surprised if this scenario doesn’t unfold.”
Probabilities on Polymarket
With Musk’s commentary on a potential pardon for Bankman-Fried, Polymarket recorded a 9% increase in the likelihood of this event, rising from 4% to 13%. Nevertheless, the latest statistics indicated a decline, with the odds now standing at 7% at present.
This fluctuation underscores the uncertainty surrounding the speculations, leaving the resolution of SBF’s destiny subject to conjecture. Despite this, there have been no indications from President Biden about granting a pardon to Bankman-Fried.
Nevertheless, public apprehensions persist, especially following the recent pardon of Hunter Biden, contradicting previous assurances.
Furthermore, Nishad Singh, the former Engineering Director of FTX, avoiding imprisonment through significant cooperation has heightened worries about accountability and regulatory governance in the digital currency sector.
Implications on the Crypto Industry
The buzz surrounding a potential presidential pardon for Sam Bankman-Fried sheds light on the broader issues confronting the cryptocurrency realm. As fraudulent activities and cyber breaches increase, it becomes crucial for regulators to adopt a cautious and comprehensive strategy in addressing such matters.
Furthermore, the necessity for a fair and equitable regulatory structure becomes evident, one that promotes the industry’s development while tackling its inherent vulnerabilities.
With speculations about Donald Trump’s potential resurgence to the presidency and the probable appointment of Paul Atkins as the next SEC chair, there is an anticipation that the cryptocurrency sector may receive more favorable treatment.
Nevertheless, concerns prevail, particularly in light of Biden’s past pardon of his son, prompting questions about the future of regulatory oversight within the sector.