SBF’s status as a major donor to the Democratic Party has fueled discussions about potential clemency.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Popular tech billionaire Elon Musk has weighed in on the growing speculation surrounding a potential presidential pardon for Sam Bankman-Fried (SBF), the disgraced founder of FTX.
On December 23, Musk responded to an X (formerly Twitter) post suggesting that SBF, a significant donor to the Democratic Party, might receive clemency from President Joe Biden, adding that he “would be surprised if this doesn’t actually happen”.
Despite the speculation, Polymarket users remain unconvinced about the likelihood of a pardon. According to data from the platform, only 5% of users believe Biden will likely issue a pardon for SBF as one of his final acts before leaving office.
The data suggests that most observers consider it highly improbable. This aligns with the broader public sentiment that any clemency for SBF would face significant backlash. Despite the low probability, Musk’s comment shows he believes the government could overlook SBF’s wrongdoings to offer him a pardon.
Presidential pardons have often been controversial, especially when linked to high-profile cases or political connections.
Meanwhile, speculation about SBF’s potential pardon stemmed from his financial contributions as the second-largest donor to the Democratic Party during the last election cycle. Historically, outgoing presidents have leveraged their clemency powers in surprising and polarizing ways, fueling debates over justice and political influence.
Past US presidents, including Barack Obama and Donald Trump, pardoned a total of 2,164 individuals before leaving the White House during their last tenure.
However, in the case of SBF, his criminal offense is considered “one of the largest financial frauds in history”. The former FTX boss was indicted in December 2022 for defrauding FTX and Alameda Research investors of around $8 billion.
According to the prosecutors, he stole the funds from FTX customers to settle Alameda’s debts and purchase luxury properties in the Bahamas.
In March 2023, SBF was sentenced to 25 years in prison, marking a dramatic fall for the former crypto mogul who once held the spotlight as a promising figure in the industry. His conviction sent shockwaves across the crypto sector, exposing vulnerabilities in oversight and trust within the ecosystem.
Authorities have also taken action against SBF’s co-conspirators. Caroline Ellison, the former CEO of Alameda Research, was sentenced to two years in prison in October. Ryan Salame received a 90-month prison sentence in May.
In contrast, FTX executives Gary Wang and Nishad Singh avoided prison time. Instead, they were sentenced to three years of supervised release for their roles in the FTX collapse.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
