On July 16, the U.S. Senate took a definitive stand, unanimously passing a resolution to deny any presidential pardon for Sam Bankman-Fried, the controversial founder of the collapsed crypto exchange FTX. Not a single senator objected to the resolution, reflecting a strong political consensus against any leniency for Bankman-Fried.
The resolution, designated S. Res. 772, was spearheaded by Senator Cynthia Lummis, a Republican from Wyoming, and Senator Ruben Gallego, a Democrat from Arizona. This bipartisan initiative shows the serious nature of Bankman-Fried's conviction, which came in November 2023 on seven counts related to the $8 billion collapse of FTX. With American customers losing significant funds, the incident has been characterized as one of the largest financial frauds in U.S. history.
When introducing the resolution, Lummis remarked, “He had his day in court,” while Gallego was more straightforward with, “Keep him locked up.” Although the resolution is non-binding and cannot legally prevent a presidential pardon, it sends a strong message to the White House about the Senate’s stance.
Bankman-Fried's fraud involved misusing billions from customer deposits, diverting funds to Alameda Research, a trading firm he also owned. These funds were used for various purposes, including speculative trades and political donations. The scheme unraveled in November 2022 when CoinDesk revealed the precarious position of Alameda, leading to a catastrophic price collapse and FTX's bankruptcy filing.
While former President Trump has granted clemency to other crypto figures, such as Changpeng Zhao and Ross Ulbricht, he has drawn a line at Bankman-Fried. Speculation about a possible pardon persisted, fueled by efforts from Bankman-Fried's family to lobby the White House, but officials have consistently stated that no pardon is in the works.
This material is informational and not financial advice.
