US lawmakers Warn Against Presidential Pardon for Sam Bankman-Fried

Crypto Insight Summary: The former FTX CEO is currently serving a 25-year sentence after being found guilty on seven felony charges related to the misuse of customer funds. Two US lawmakers on opposite sides of the political aisle are backing a resolution that “under no circumstances should Samuel [SBF] Bankman-Fried receive executive clemency, including a pardon or commutation.” In a resolution to be introduced Wednesday, Republican Senator Cynthia Lummis and Democratic Senator Rubén Gallego that should US President Donald Trump grant SBF’s request for a pardon, it would “erase [his] conviction [...] weaken deterrence, and send a deeply damaging message that perpetrators of large-scale financial fraud can escape permanent accountability.” The resolution would be non-binding, as a US president’s pardon power is enshrined in the Constitution. “[The US Senate] affirms that the 25-year sentence imposed upon Bankman-Fried reflects the extraordinary scale and deliberateness of his crimes, his lack of remorse, and the catastrophic harm inflicted upon millions of victims, and that such a sentence serves the interests of justice,” read the resolution. _Source:_ The resolution came after Bankman-Fried formally of his conviction on seven felony counts related to the misuse of FTX user funds. Last week, a federal appeals court , leaving his only legal path forward a presidential pardon or an appeal to the US Supreme Court. Bankman-Fried was convicted in November 2023 following the collapse of cryptocurrency exchange FTX a year earlier, which resulted in investor losses totaling billions of dollars. He was later sentenced to 25 years in prison. However, in a January interview with the New York Times, the president he had no plans to pardon Bankman-Fried. _Source:_ Cointelegraph sought comment from Gallego’s office but did not receive an immediate response. Caroline Ellison, the former CEO of Alameda Research, received a two-year sentence in 2024 and was given an early release in January after 14 months. Crypto Insight Analysis: Direction: Neutral Impact: No Impact Horizon: Short-term (1-3 days) Reasoning: The resolution is non-binding and unlikely to affect crypto markets as it doesn't change SBF's legal status.