U.S. senators press Trump not to pardon former FTX chief Sam Bankman-Fried

Traders Union
All News
Crypto
Senators oppose FTX pardon

Highlights

Senators Cynthia Lummis and Ruben Gallego introduce a four-page resolution urging Trump not to grant clemency to Sam Bankman-Fried after his 25-year sentence for FTX fraud.
Bankman-Fried's appeal to overturn his conviction is denied last week, upholding his sentence for defrauding FTX customers, lenders, and investors in a case labeled as the largest financial fraud of the past decade.
The Senate resolution emerges as lawmakers negotiate crypto market legislation, with debates centered on restricting senior federal officials' digital asset transactions due to ethical concerns involving Trump and his family.

Senate resolution targets clemency bid

As first reported by The Block, Sens. Cynthia Lummis of Wyoming and Ruben Gallego of Arizona introduce a four-page resolution stating that Samuel Bankman-Fried should not receive executive clemency under any circumstances.

Lummis says in a statement that Bankman-Fried already has his day in court, after a New York jury convicts him in November 2023 on seven counts tied to defrauding FTX customers, lenders and investors. A judge sentences him to 25 years, and last week he loses an appeal seeking to overturn that sentence on claims he was denied a fair chance in court.

Bankman-Fried runs crypto exchange FTX and founds hedge fund Alameda Research. FTX files for bankruptcy in November 2022 after customer assets are revealed to have been used to support Alameda's activities, in a case prosecutors describe as likely the largest financial fraud of the past decade.

Crypto policy tensions widen in Washington

Trump has pardoned several figures linked to the crypto industry over the past year, including Ross Ulbricht and former Binance chief Changpeng Zhao, though he says he has no plans to pardon Bankman-Fried. The White House does not immediately respond to a request for comment on the Senate resolution.

Gallego says Bankman-Fried takes advantage of millions of Americans and steals their savings, adding that he has shown no remorse and is trying to portray himself as a victim of political persecution. Bankman-Fried has remained active on X and GETTR over the past year, praising some of Trump's actions, including the pardon of former Honduran President Juan Orlando Hernandez.

The resolution also lands as Lummis and Gallego negotiate broader crypto market structure legislation that would create a federal regulatory framework for digital assets. One key sticking point remains ethical concerns around Trump and his family's cryptocurrency ventures, with Gallego arguing that the bill should restrict senior federal officials and their immediate families from certain digital asset transactions.

In our earlier report, we covered the SEC’s expected “innovation exemption” that could allow crypto firms to offer tokenized versions of U.S. stocks with lighter regulatory requirements. We noted that platforms such as Coinbase, Robinhood, and Kraken were preparing to expand these products, while traditional market participants warned about potential liquidity fragmentation and investor-protection gaps if the framework isn’t clearly defined.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.