- Elon Musk suggests Biden might pardon Sam Bankman-Fried, sparking debate over the future of the crypto industry.
- Prediction market Polymarket shows a 5% chance of SBF receiving clemency, while Ross Ulbricht has a 67% chance.
- A potential SBF pardon could destabilize the crypto market, as it may signal weakness in the system following the FTX collapse.
Tesla CEO Elon Musk has recently sparked much discussion after stating that the current US president, Joe Biden, could possibly pardon SBF, the ex-founder of the bankrupt FTX exchange. Musk posted the comments on December 23 in reply to a post on X concerning SBF’s political contributions. He said, “I will be shocked if this doesn’t happen,” thereby adding to the discourse on whether or not the disgraced tycoon would be pardoned.
Crypto Empire Collapse
Bankman-Fried was arrested in December 2022 for the accusations of defrauding the FTX customers of billions of dollars. The funds were also allegedly used to pay off debts of his cryptocurrency trading firm, Alameda Research and to buy luxurious properties in Bahamas. In a trial that took place in March 2023, SBF was found guilty and consequently received a 25-year jail term after the fall from the peak of his crypto empire.
Despite this, the prediction market on the platform Polymarket has a rather different view about the possibility of a pardon. The platform added that there is a 5% chance that SBF will get a lighter sentence through clemency. On the other hand, Ross Ulbricht who is the creator of the Silk Road darknet market has a 67% chance of being pardoned in the future.
Crypto Worries Over Pardon
The idea about a presidential pardon for Bankman-Fried is worrying the community. As for those who believe that the crypto biz may be harmed by a move of such a kind, they are right as the industry is still reeling from the effects of the FTX debacle. A pardon may be perceived as a weakness of the system therefore would cause more market fluctuations and instabilities.
The Biden administration has not released any official communication on the subject of pardon for SBF. However, Musk’s statements have generated more interest in the case and fan more discussions on the future of the cryptocurrency sector. Over time, market participants watch and wait, uncertain of the effect the situation may have on the digital asset market.
