Will FTX’s Sam Bankman-Fried Get an Early Exit from Jail with Presidential Pardon?

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As a researcher with a keen eye for detail and a deep interest in the intersection of politics, finance, and law, I find myself intrigued by the ongoing speculation surrounding Sam Bankman-Fried’s potential early release from prison. The case is reminiscent of a Hollywood thriller, with twists and turns that keep you on the edge of your seat.

Previously, BeInCrypto had raised doubts about Sam Bankman-Fried, the ex-founder of FTX, potentially receiving early prison release due to a possible presidential pardon from President Biden.

The tweets of notable individuals, including Elon Musk, indicate a possible likelihood. However, I’m curious about the concrete data regarding this matter. How plausible is it that the founder of FTX could be released from prison before a year has passed since his conviction?

Sam Bankman-Fried Donated Over $5 Million to Biden’s Campaign

In the year 2020, when FTX was experiencing unprecedented success, Sam Bankman-Fried contributed a significant amount of $5.2 million to political action committees (PACs) that supported Joe Biden. He ranked second among individual donors for the Democratic party, surpassed only by Michael Bloomberg.

Historically, individuals who have made significant political contributions or are affiliated with such donors have often been granted substantial benefits, such as leniency in legal proceedings like convictions and pardon considerations. To illustrate this, let’s look at Marc Rich, a controversial oil trader, who managed to avoid paying at least $50 million in taxes back in 2021.

In a similar vein, Paul Pogue, another individual who served time for tax fraud, received a pardon from Donald Trump in 2020. It was alleged that this action may have been prompted by the Pogue family contributing over $200,000 to Trump’s campaign.

Sam Bankman-Fried allegedly utilized funds stolen from his customers for political campaign contributions, primarily backing Democratic candidates (98%). As a result, he ranks second among Democratic donors. According to predictions market Kalshi on platform X (previously known as Twitter), there is approximately a 12% chance that President Biden may grant him clemency.

Given the past debates over political contributors often receiving clemency, it’s not unreasonable to speculate that Sam Bankman-Fried could possibly be under President Biden’s consideration.

Furthermore, Michael Conahan, who was involved in the notorious “kids-for-cash” scandal, received a pardon from President Biden just last week. Conahan had been sentenced to 17 years due to this case where he accepted bribes from private juvenile detention centers in return for imprisoning children, many of whom were charged with minor offenses and subsequently incarcerated in these facilities.

It’s a tangible proof that Biden might not shy away from providing clemency to major offenders. 

The FTX Founder’s Campaign Finance Violation Charges were Dropped

As a crypto investor reflecting on the recent trial, one point that sparked much debate was the government’s decision to overlook Sam Bankman-Fried’s allegations concerning campaign finance irregularities. This omission in the charges raised questions and stirred controversy among many observers.

Initially, there were eight accusations against him, which encompassed conspiracy to deceive the U.S. government and breaching campaign financing regulations. Yet, in July 2023, one of those charges related to campaign finance was dismissed.

Originally, the case against me was dismissed because of a treaty commitment with the Bahamas, the location to which I was extradited. In essence, the Bahamian authorities declined to include this particular charge in their extradition request.

Yet, the prosecution proposed a subsequent trial aimed at handling these allegations specifically. This additional trial would serve to revisit the dismissed campaign finance charge as well as charges related to bribery and running an unlicensed money-transfer operation.

In December 2023, I learned that the prosecution decided against another trial due to a significant overlap with the evidence previously presented during the initial trial.

A Controversial 25-year Sentence

Previously this year, Sam Bankman-Fried was handed a 25-year prison term for various counts of wire fraud and money laundering. Yet, several people viewed it as light, taking into account the magnitude and extent of the wrongdoing he committed.

In simpler terms, the failure of FTX resulted in a loss of approximately $16 billion for customers and creditors, and it reduced the market value by over $100 billion during the crypto winter. Given that this is one of the biggest financial scandals in the U.S., some people believe the sentence handed down was too lenient.

According to renowned attorney Richard W. Painter, Bankman-Fried and his allies are seeking a pardon or reduction of sentence in exchange for donated campaign funds that were allegedly embezzled from FTX investors. If any president were to grant this request, they should be impeached for engaging in bribery.

Initially, the prosecutors aimed for a 50-year prison term, claiming that Bankman-Fried’s wrongdoings were exceptionally vast and damaging. They highlighted the substantial financial losses endured by FTX clients and the significant decline in public faith in the cryptocurrency market.

As an analyst, I find myself reflecting on the recent sentencings in the FTX case. Caroline Ellison, a key figure in the handling of customer funds, received a lenient 2-year sentence as a result of her cooperation with prosecutors. On the other hand, Gary Wang, who wrote code allowing unlimited credit to Alameda, walked away scot-free.

As a crypto investor reflecting on past instances, I can’t help but question the ethical implications when wealth seems to provide an escape route from legal issues, often via political donations. It’s a matter that deserves careful consideration in our society.

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2024-12-27 03:53