Trump Pardons BitMEX Founders—Is Do Kwon Next?

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Trump is shaking things up in crypto again! This time, he’s handing out pardons, and the latest beneficiaries are BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. The trio had pleaded guilty to breaking banking laws, but Trump’s move wipes their records clean. With this bold step, many are now wondering—could Terra’s Do Kwon be next in line?

Unexpected Turn in Crypto Regulation

Trump’s pardon for the BitMEX founders is a major shift in U.S. crypto regulation. Previously, the executives had settled their cases by paying $30 million in fines and serving prison sentences. With this pardon, they are now free from any legal restrictions. This decision follows Trump’s earlier pardon of Silk Road founder Ross Ulbricht, reinforcing his softer stance on crypto-related offenses.

Could Do Kwon Be Next?

The legal battle between Terra vs. SEC continues, and some in the crypto community believe that Trump’s decision could set a precedent in favor of Kwon. If a similar pardon is granted, it could open new opportunities for Terra and potentially reshape how crypto firms handle regulatory challenges.

SEC’s 360 Degree U-Turn – How good is it?

The U.S. SEC has also been showing signs of changing its approach. Recently, it dropped charges against Hailey Welch, the influencer linked to the HAWK token. This marks a shift from aggressive crackdowns to a more balanced regulatory stance. Instead of punishing individuals without solid evidence, the SEC’s decision suggests a move toward clearer guidelines and fairer enforcement.

While the crypto cheers Trump’s pardon spree, Crypto expert and veteran Peter Schiff lashed Trump’s pardons of crypto executives, stating that while he opposes most anti-money laundering (AML) laws, he believes those pardoned were guilty. He also mentioned that the IRS attempted to indict him for AML violations for years but failed due to his bank’s clean records.

Trump pardoned more crypto executives convicted of violating AML laws. I'm against most of those laws, so I'm fine with the pardons, but I'm sure they were guilty. The IRS tried for years to indict me for AML crimes, but my bank was so clean they couldn’t even trump something up.

— Peter Schiff (@PeterSchiff) March 28, 2025

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The Future of Crypto Regulation

Moreover, Paul Atkins, Trump’s nominee to lead the SEC, could give a positive boost. Unlike Gary Gensler, who focused on enforcement actions, Atkins has promised a structured and transparent regulatory framework. Many believe his leadership could encourage institutional investment and the broader adoption of digital assets. However, his own crypto investments, worth nearly $6 million, have raised concerns about potential conflicts of interest.

With the changing trend,  Trump’s recent decisions could set the stage for more favorable policies toward crypto. Whether this extends to Do Kwon remains uncertain, but the industry is watching closely.