Sources confirm that Sam Bankman-Fried, the disgraced founder of FTX, is actively seeking a presidential pardon from Donald Trump. The move, revealed through documents obtained by this desk, threatens to further erode trust between the United States and the United Kingdom, where thousands of victims are still reeling from the collapse of the cryptocurrency exchange.
Bankman-Fried, convicted on seven counts of fraud and money laundering, has reportedly hired a team of high-profile lawyers to lobby the former president. The documents, which include internal memos and communications between legal teams, outline a strategy that leverages Bankman-Fried's substantial campaign contributions to Republican causes.
The timing is crucial. With Trump considering another run for the White House, the prospect of a pardon for Bankman-Fried could become a bargaining chip. But the implications stretch far beyond US borders. British investors, many of whom lost life savings in the FTX collapse, view any pardon as a slap in the face. 'It would confirm that justice is for sale,' a source close to the UK’s Financial Conduct Authority told me. 'The special relationship is already strained. This would be a wrecking ball.'
The numbers are staggering. FTX's bankruptcy filing in November 2022 revealed over 3 million creditors worldwide, with substantial exposure in the UK. British pension funds, hedge funds, and retail investors were among the hardest hit. The total losses in the UK alone are estimated at £1.2 billion.
Bankman-Fried is currently serving a 25-year sentence at a federal prison in California. His legal team argues that the prosecution was politically motivated, a claim that the US Department of Justice denies. But the pardon bid is not without precedent. Trump previously pardoned or commuted sentences for several high-profile figures, including Steve Bannon and Roger Stone.
A spokesperson for the Trump campaign did not respond to requests for comment. However, a source close to the former president indicated that the matter is 'under consideration' but that any decision would be 'based on the merits.'
Critics are incredulous. 'There is no merit here, only money,' said a former federal prosecutor familiar with the case. 'Bankman-Fried stole billions. A pardon would be an indictment of the system.'
The British government has remained silent on the matter, but diplomatic cables suggest deep unease. The UK’s attorney general has privately expressed concerns that a pardon could undermine international cooperation in financial crime cases. Extradition treaties and mutual legal assistance agreements could be jeopardised.
For now, the ball is in Trump’s court. But as one UK Treasury official put it: 'If he pardons this man, it tells the world that American justice is for sale. And that affects us all.'
The FTX saga is far from over. And the fallout may yet reshape the landscape of global finance.
