- Rumors about a presidential pardon for the founder of FTX have appeared
- There is still a fluctuating appearance and public speculation surrounding the possible pardon
Amid plans to pay 119% of the claim value back to almost all former FTX users, speculation about what Sam Bankman-Fried might have increase. In fact, there are now rumors of a presidential pardon from Joe Biden.
What rumors are circulating about the founder of FTX?
Bankman-Fried, the disgraced former CEO of the now-defunct FTX exchange, was previously expected to face up to 25 years in prison for his role in the exchange's collapse. However, with his legal team actively seeking a reduced sentence, the upcoming bankruptcy proceedings in January 2025 are expected to be extremely important.
Here, it is worth noting that the US government has pushed for a sentence between 40 and 50 years. Meanwhile, his defense has argued for just six.
In addition, Bankman-Fried's strong financial support for the Democratic Party has fueled speculation that his political connections could influence the outcome here.
Elon Musk weighs in
Commenting on the same, Wall Street Mav posted on X and noted,
“Guess who gets an early pardon from President Biden.”
In the post, along with a question about possible political connections, images of Bankman-Fried and President Joe Biden were shared. He also highlighted Bankman-Fried's status as the second largest donor to the Democratic Party.
This announcement started a wave of reactions within the crypto community. Among the notable responses was one from Tesla CEO, Elon Musk, who shared his perspective on the situation and said,
“I'll be surprised if this doesn't happen.”
Polymarket opportunities
Following Musk's comment on a possible pardon for Bankman-Fried, Polymarket saw a 9% increase in the odds of that happening, rising from 4% to 13%. However, the latest update showed a decline, with the numbers at 7% at press time.
This variable highlighted the uncertainty surrounding the rumours, leaving the outcome of what happened to SBF open to speculation. In fact, President Biden has given no indication of pardoning Bankman-Fried.
Nevertheless, public concerns remain high, especially since the recent pardon of his son, Hunter Biden, just a few weeks ago – contradicts previous promises.
In addition, Nishad Singh, the former Director of Engineering of FTX, avoiding a prison sentence in lieu of substantial cooperation has raised more concerns regarding accountability and regulatory control in the cryptocurrency space.
Impact on the crypto space
Speculation about a possible presidential pardon for Sam Bankman-Fried highlights the broader challenges facing the cryptocurrency space. As scams and hacks continue to increase, it is increasingly important for regulators to take a cautious and comprehensive approach to handling such cases.
In addition, the need for a fair and balanced regulatory framework is emerging, one that supports the growth of the industry while addressing its inherent risks.
With Donald Trump's return to the presidency and Paul Atkins named as the next SEC chairman, there is hope that the cryptocurrency space will receive more favorable treatment.
However, there are still concerns, especially since Mr. Biden has a pardon from his former son, which raises questions about the future of regulatory control in the industry.
Source: https://ambcrypto.com/ill-be-shocked-if-elon-musk-reacts-to-biden-pardoning-ftx-founder-rumours/
