Crypto: The Founder Of FTX Courts Republicans From His Prison

The former CEO of FTX, Sam Bankman-Fried, sentenced to 25 years in prison for massive fraud, is attempting a bold approach to regain his freedom. His parents are leading an active campaign within the Republican camp to obtain a presidential pardon from Donald Trump.

Sam Bankman’s Parents Seek a Presidential Pardon

In an interview with the New York Sun from his prison, Sam Bankman-Fried has marked a significant political shift. The former CEO of FTX, once known for his generous donations to the Democratic Party, now displays a critical stance towards the Biden administration.

“The Biden administration was incredibly destructive and hard to manage, while the Republican Party was much more reasonable,” he declared, marking a sharp break from his political past.

This shift comes as his parents intensify their efforts to secure a presidential pardon. Joseph Bankman and Barbara Fried have begun consultations with specialized lawyers and close associates of Trump, according to a recent report from Bloomberg.

This effort takes place in a context where Trump has already shown clemency towards certain controversial figures in the crypto world, notably Ross Ulbricht, the founder of Silk Road.

Major Obstacles to the Pardon

The chances of obtaining a presidential pardon seem limited. William Livolsi, executive director of the White Collar Support Group, points out that unlike Ulbricht’s case, Bankman-Fried’s situation does not benefit from the same popular support.

Judge Lewis A. Kaplan, when pronouncing the sentence, particularly emphasized the gravity of the acts committed, describing SBF’s behavior as “evasive” and “petty” during the trial.

The recent judicial decision to seize his assets valued at nearly a billion dollars complicates the situation further. This seizure includes 55.2 million Robinhood shares valued at $605.7 million, two luxury planes, and a substantial cryptocurrency portfolio. These assets will be used to compensate the victims of the crypto exchange FTX, whose total losses amount to nearly $9 billion.

The clemency campaign is therefore set to be particularly challenging for SBF’s parents, especially since any favorable decision could be perceived as favoritism towards the economic elite, a sensitive issue in the current political context.