Trump’s Pardon Jolts the Crypto World

Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy, in connection with the collapse of his cryptocurrency exchange FTX in November 2022. On March 28, 2024, he was sentenced to 25 years in federal prison and ordered to forfeit approximately $11 billion. Meanwhile, SBF and his family maintain he was wrongly convicted and have sought clemency from Trump, citing what they allege are politically motivated prosecutions following his alignment with Republican-leaning donations.

The Trump pardon of CZ comes amid a broader shift. Trump has repeatedly said his second term would mark an end to what he called the “era of crypto oppression”.

In July 2024, he pledged: “The moment I’m sworn in, the persecution stops and the weaponisation ends against your industry.” That rhetoric has resonated among crypto proponents who previously complained of enforcement actions under the prior administration.

Moreover, Trump’s use of the pardon power has extended to figures from the finance and tech sectors, reinforcing the perception he favours industry insiders over standard enforcement. The CZ pardon ties into that pattern.

SBF vs. CZ: A Study in Contrasts

Business Foundations:

CZ built Binance in 2017 into the world’s largest crypto exchange by volume through aggressive product rollouts and minimal U.S. exposure. SBF, meanwhile, positioned FTX as a regulatory-friendly, institutional bridge, one that ultimately masked deep financial misconduct within its trading affiliate Alameda Research.

Legal Fault Lines:

CZ’s charges were compliance-related, a failure to implement robust anti-money-laundering protocols. His cooperation, swift plea, and partial restitution framed him as a “fixable” case. SBF’s offenses, by contrast, involved deliberate deception, misuse of customer funds, and large-scale fraud, elements far more politically toxic.

Aftermath:

CZ walks free, possibly preparing a gradual re-entry into the crypto ecosystem. SBF remains confined, facing civil suits and regulatory bans. While markets speculate about a pardon, the legal gulf between the two cases remains vast..

The Optics of Power and Punishment

The political undertones are difficult to ignore. Trump’s decision to pardon CZ, a figure admired across crypto’s libertarian circles, aligns neatly with his rhetoric of freeing “builders” from government overreach. Meanwhile, SBF’s saga symbolizes the industry’s excesses and ethical collapse.

Observers note a recurring pattern: Trump’s clemency often targets individuals who represent innovation, wealth, or ideological alignment with his policy themes. From financiers like Michael Milken to crypto founders such as Ross Ulbricht, his second-term pardons reflect a selective leniency toward market disruptors rather than fraud convicts.

Adding intrigue, reports surfaced that SBF once offered up to $5 billion to dissuade Trump from running in 2024, a gesture that now undercuts his appeals for mercy from the same man.

Will SBF be pardoned?

Despite the spike in prediction-market odds, the likelihood of an SBF pardon remains uncertain. Trump’s team has issued no formal statement or hints of consideration. Legally, the distinction between compliance negligence and orchestrated fraud is stark. While Trump has demonstrated political flexibility, granting clemency to someone convicted of one of the largest financial crimes in U.S. history could provoke severe public backlash.

Still, Trump’s unpredictable use of executive power leaves room for speculation. He has repeatedly portrayed himself as a champion of “second chances” and has not shied from controversial pardons in the past. If SBF manages to reposition his narrative, from villain to political scapegoat, a distant possibility remains.

For now, that possibility exists only in the market’s imagination. Trump has offered no comment, his Justice Department has shown no movement, and public sentiment leans heavily against SBF’s release. Whether mercy or message prevails will reveal how far the administration’s crypto rapprochement is willing to go, and whether the scales of justice, in this new political era, are being reset by influence as much as by law.