Former FTX CEO, Sam Bankman-Fried, possibly in line for a pardon from Donald Trump? Speculations rise as the US presidential election nears, fueling rumors of a political move to attract the crypto electorate. This divisive scenario, merging electoral strategy, lobbying, and historical precedents, stirs up both Wall Street and the crypto world.
The crypto community is witnessing a historic turning point. Donald Trump has just granted clemency to Changpeng Zhao, former CEO of Binance. This marks the second presidential pardon for a major figure in the sector in less than a year. This decision comes just weeks after the release of Ross Ulbricht, founder of the Silk Road black market. These two acts of clemency have immediately triggered a wave of speculation: could Sam Bankman-Fried, currently incarcerated for 25 years, be next on the list?
Data from Polymarket, a decentralized prediction markets platform, reveals a dramatic shift in market expectations. Within five hours of the announcement regarding CZ, the probability of SBF’s release before the end of 2025 jumped from 4% to 16%. This volatility reflects the uncertainty and anticipation currently characterizing market sentiment around this case. Traders quickly repositioned their bets, detecting a possible pattern in the presidential strategy toward convicted figures in the crypto sector.
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Comparative analysis of the three cases reveals an instructive scale of severity. Ross Ulbricht was serving double life sentences plus 40 years without the possibility of parole for facilitating anonymous trade in narcotics, weapons, and stolen data through Silk Road. His convictions included drug distribution, money laundering, computer hacking, and running a continuing criminal enterprise. The platform he created represented a direct threat to public safety according to federal prosecutors.
At the opposite end of the spectrum, Changpeng Zhao pleaded guilty to a single violation of the Bank Secrecy Act and regulatory non-compliance. His four-month federal prison sentence reflected primarily administrative infractions. Although Binance processed billions of dollars in suspicious transactions, CZ was never accused of directly misappropriating customer funds. This distinction remains fundamental in analyzing his pardon.
Sam Bankman-Fried sits in a troubling middle ground. Convicted in March 2024 of wire fraud, money laundering, and conspiracy, he orchestrated the misappropriation of several billion dollars belonging to FTX customers to his trading company Alameda Research. Prosecutors initially sought between 40 and 50 years in prison. His 25-year sentence already represented a form of judicial clemency. Unlike Ulbricht, SBF did not facilitate violent crimes. But unlike CZ, he directly stole from his customers.
Sam Bankman-Fried’s parents, both Stanford law professors, are leading an active campaign on Capitol Hill to secure their son’s release. This public relations offensive takes place in a particular political context where Trump seeks to consolidate his image as a pro-crypto president. During his campaign, Trump promised to make the United States the global crypto capital and made numerous appearances at industry events.
Ulbricht’s pardon fulfilled an explicit campaign promise made to the libertarian and crypto community. CZ’s pardon is part of a reconciliation strategy with the blockchain industry, particularly after years of crackdown under the Biden administration. Both decisions generate significant political capital with a young and tech-savvy electoral base. Pardoning SBF could theoretically align with this dynamic of positioning favorably toward the sector.
However, Sam Bankman-Fried’s political profile seriously complicates this equation. Before the collapse of FTX in November 2022, SBF was the second-largest donor to the Democratic Party, having contributed over $40 million to Democratic candidates and committees during the 2022 electoral cycle. His brother Gabriel Bankman-Fried led Guarding Against Pandemics, a progressive lobbying organization. This political affiliation could present an insurmountable obstacle in Trump’s pragmatic calculation regarding loyalty and image.
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