The disgraced founder of FTX, Sam Bankman-Fried, is now seeking a presidential pardon from Donald Trump. Sources close to the convicted fraudster say he believes Trump, a fellow celebrity businessman turned political outcast, might be sympathetic to his cause. Bankman-Fried, currently serving a 25-year sentence for one of the largest financial frauds in history, has reportedly instructed his legal team to explore avenues for clemency.
UK financial regulators are monitoring the situation closely. The Financial Conduct Authority, still smarting from the collapse of FTX's European arm, is concerned that a pardon could set a dangerous precedent for international crypto regulation. Whitehall insiders say the Treasury has been briefed. One senior FCA official described the move as 'a cynical ploy from a man who thinks rules apply to everyone but himself.'
The optics are brutal. Bankman-Fried, once feted as a genius of the new digital economy, is now a convicted criminal. His appeal for a pardon is a long shot. Trump, no stranger to legal battles himself, may see this as an opportunity to bash the establishment. But the politics are fraught. A pardon for a crypto fraudster who bilked billions from investors, many of them ordinary people, would be a tough sell even for loyal Republicans.
Meanwhile in Westminster, MPs are asking questions. Labour's shadow Treasury team has tabled a written question about the FCA's contingency plans. Backbenchers from both sides are uneasy. The crypto lobby, which spent heavily to influence UK policy, is now toxic. One Tory MP told me: 'We were warned about these cowboys. Now we see the fallout.'
The Bankman-Fried saga is far from over. This is a man who built a house of cards and watched it collapse. He now faces a long stretch in a federal prison. A pardon from Trump would be his only escape. But even for a president who defied convention, this would be a nuclear option. Watch this space.
