Recent reports indicate that the parents of Sam Bankman-Fried, Joseph Bankman and Barbara Fried, have been exploring the possibility of securing a presidential pardon for their son from President Donald Trump. Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, was sentenced to 25 years in prison for fraud. His parents, both Stanford Law School professors, have engaged in discussions with lawyers and individuals close to Trump’s circle, although it’s unclear if they have made direct outreach to the White House.
This situation comes at a time when Trump has previously shown a willingness to use his pardon power, notably with the commutation of Silk Road founder Ross Ulbricht’s life sentence. However, the context for Bankman-Fried’s case seems different, as he lacks the widespread advocacy support that Ulbricht had from the crypto and libertarian communities. The attempt to secure a pardon has sparked various reactions, with some in the crypto community and on social media expressing skepticism or opposition to such a move, given Bankman-Fried’s prior political donations to Democrats and the nature of his conviction.
The legal and political implications of this move are significant, reflecting the complexities of high-profile white-collar crime cases intersecting with presidential clemency decisions. The outcome of these efforts remains uncertain, with no confirmation from Trump or his administration on considering such a pardon.
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Trump granted 237 acts of clemency during his first term, consisting of 143 pardons and 94 commutations. This number is lower compared to many modern presidents, with only George H.W. Bush and George W. Bush granting fewer over their full terms. Trump often bypassed the traditional process via the Office of the Pardon Attorney (OPA), instead relying on an ad hoc process influenced by personal and political connections. Only 25 of his clemency grants followed the OPA’s process, with the rest coming through direct appeals or connections to Trump allies.
Roger Stone, a political consultant convicted of lying to Congress, was among those whose sentences were commuted. Steve Bannon, Trump’s former chief strategist, was pardoned for charges related to fraud in a border wall fundraising campaign. Alice Marie Johnson, whose sentence for drug trafficking was commuted following advocacy by Kim Kardashian, was later fully pardoned.
Charles Kushner, father of Trump’s son-in-law Jared Kushner, received a pardon for convictions including tax evasion and witness tampering.
Other notable recipients included individuals like Paul Manafort, Michael Flynn, and George Papadopoulos, all connected to the Mueller investigation into Russian interference in the 2016 election.
Ross Ulbricht was convicted for creating and operating Silk Road, an online black market where users could buy and sell illegal goods, including drugs, using bitcoin. His crimes were primarily centered around conspiracy to commit money laundering, computer hacking, and narcotics trafficking. Ulbricht’s platform facilitated over $200 million in illegal transactions, but he himself did not steal money directly from users; rather, he enabled a marketplace for illegal activities.
Sam Bankman-Fried was convicted of fraud, conspiracy, and money laundering related to the collapse of FTX, a major cryptocurrency exchange. His charges stem from directly defrauding customers and investors by misusing billions of dollars of customer funds for personal gain and to cover losses at Alameda Research, his trading firm. Unlike Ulbricht, Bankman-Fried’s actions resulted in direct financial loss to his customers and investors, leading to the platform’s insolvency and one of the largest financial frauds in crypto history.
Over the years, Ulbricht gained significant support from parts of the crypto community, particularly those with libertarian views, who argued that his sentence was excessively harsh and that he was being punished for pioneering a new form of commerce. The #FreeRoss movement had substantial backing, which played a role in Trump’s decision to commute his sentence.
Bankman-Fried’s case has not seen the same level of public support for several reasons. His actions were seen as a direct betrayal of trust by users of FTX, leading to widespread financial loss. Additionally, his political activities and donations have been scrutinized, potentially affecting public and political sympathy. The crypto community’s reaction has been mixed, with some highlighting the disparity in sentencing but also pointing out the severity of his crimes compared to Ulbricht’s.