In a definitive move with significant implications for the cryptocurrency industry, the White House has announced that President Donald Trump will not grant a pardon to Sam "SBF" Bankman-Fried, the convicted founder of the collapsed FTX exchange. A senior administration official stated clearly that a pardon for Bankman-Fried is "not under consideration," extinguishing months of speculation and sending a powerful message about accountability for financial crimes in the digital asset space.
The announcement, first reported by Solid Intel, comes ahead of Bankman-Fried's upcoming sentencing hearing. Legal analysts note this preemptive denial could influence sentencing arguments, as it removes the shadow of potential executive clemency from the judicial process. The decision aligns with a broader administration stance on white-collar crime and intensified Justice Department scrutiny of cryptocurrency platforms.
The denial is viewed as politically astute, given the massive scale of the FTX fraud—an $8 billion shortfall affecting millions of retail investors worldwide. Sam Bankman-Fried was convicted in October 2023 on seven counts of fraud and conspiracy following the exchange's catastrophic collapse in November 2022. His previous status as a major bipartisan political donor complicated the narrative, but the vast victim pool created immense public pressure against a pardon.
Concurrently, pro-Ripple lawyer John Deaton publicly slammed renewed chatter about a potential SBF pardon, rejecting attempts to rewrite the history of the FTX collapse. Deaton dismissed projections that FTX could have reached a $78 billion net asset value by 2025, emphasizing that "real court findings and real creditor losses matter more than 'what if' models." While not directly about XRP fundamentals, Deaton's stance resonates with his community, which values a pro-law, anti-corruption position.
This development is seen as crucial for long-term cryptocurrency market confidence. It signals to users and legitimate businesses that the U.S. legal system, not political connections, will govern the industry, potentially strengthening the hand of regulators advocating for clearer frameworks.
