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Tesla founder and CEO Elon Musk has sparked speculation on the possibility of outgoing US President Joe Biden granting cryptocurrency FTX founder Sam Bankman-Fried a presidential pardon just before he leaves office.
Writing on his X handle about Sam Bankman-Fried, whose empire crumbled in 2022 on the possibility that Biden could offer SBF a preemptive pardon, Elon Musk stated that he would be “shocked if this doesn’t happen.” SBF was a major donor to the Democratic Party in the past election before he became disgraced.
Sam Bankman-Fried was Found Guilty of All Charges
Sam Bankman-Fried was found guilty of seven charges following a five-week trial that concluded in November 2023. The jury found him guilty of defrauding customers and embezzling funds, and he was slapped with a 25-year sentence.
While SBF’s legal team has pleaded for a more lenient 6-year sentence, the US government has asked for a stricter sentence of between 40 and 50 years. Despite the guilty verdict on him, the idea of SBF receiving a presidential pardon has gained attention, and the sentiment of Elon Musk has raised more speculation.
The statement by Elon Musk hasn’t escaped the attention of pollsters, with prediction platform Polymarket suggesting that odds for a Sam Bankman-Fried surging from 4% to 13%. This would be an indication that most of those polled believed SBF’s ties to the Democratic Party would eventually influence his fate. The journey of SBF from a crypto wunderkind to a convicted fraudster highlights one of the most dramatic downfalls of our times.
SBF Made Huge Donations to Biden’s Election Kitty
During his peak as a crypto industry leader, Sam Bankman-Fried was hailed as a crypto leading light, having pushed FTX from nothing in 2019 to the second-largest exchange in 2022 when it came crashing down. SBF went on to cultivate the image of a tech innovator committed to social causes, earning himself widespread recognition in other spaces beyond the digital asset world. Bankman-Fried also made huge contributions in political circles, donating at least $5 million during the Biden 2020 election campaign.
Polymarket Users Don’t Believe SBF Will Be Pardoned
Nonetheless, the 2022 collapse of the cryptocurrency exchange FTX exposed an $8 billion hole in customer funds, sending shockwaves throughout the financial world. Since the legal case he faced after that resulted in his conviction, some people now speculate that Biden could pardon SBF to allow him to move on from the scandal.
The law gives the US president constitutional powers to pardon persons convicted of Federal offences. Some of the offences included in the list are those related to financial crimes, drug offences, tax evasion and several others.
Despite the speculation elicited by the viral tweet by Elon Musk, Polymarket users aren’t convinced of the likelihood of a Sam Bankman-Fried pardon. The latest data from the platform revealed that only 5% of users believed Biden would pardon SBF.
The data aligns with the broader public sentiment on the possibility of a backlash should any clemency be extended to the FTX founder. Despite all the ongoing, the Tesla CEO’s comments indicate that he believes against all odds that Biden would overlook SBF’s mistakes and pardon him.
Conclusion
Presidential pardons remain a controversial subject in the US especially when they surround political connections of high-profile cases. However, Elon Musk’s sentiments surrounding the potential pardoning of Sam Bankman-Fried following his contribution to the Democratic Party campaign cycle leave a lot to be desired. While outgoing presidents have historically leveraged their clemency powers in the most surprising ways, the world could know in the next few days whether Biden would overlook justice over political influence.
Frequently Asked Questions (FAQs)
Who is Sam Bankman-Fried, and what was he convicted of?
SBF was the founder and CEO of the crypto exchange FTX, which collapsed in November 2022. He was convicted of 7 counts, including wire fraud and money laundering and conspiracy to launder money.
What was his sentence?
The jury found him guilty of all 7 charges and sentenced him to 25 years in federal prison. SBF was accused of siphoning billions of dollars belonging to the platform’s customers into Alameda Research, a hedge fund he founded using customer’s funds. He also used the funds to make contributions to political parties.
How did the collapse of FTX affect the crypto industry?
The fall of FTX tarnished the crypto industry as prices crushed in 2022, prompting a regulatory crackdown. The market took over one year before it started bouncing back again.
