Unveiling the Influence Campaign for Sam Bankman-Fried’s Pardon
Amid the evolving legal saga of Sam Bankman-Fried, renowned conservative activist Laura Loomer and prominent crypto attorney John E. Deaton have stirred a fresh wave of controversy. They allege a “massive and well-funded” operation aimed at securing presidential clemency for the convicted FTX founder. This claim emerges in the shadow of Bankman-Fried’s 25-year federal sentence and an $11 billion forfeiture order, factors that severely limit realistic avenues for any pardon or commutation attempt.
Intricate Lobbying for Crypto’s Notorious Figure
Loomer has described the situation as a sophisticated influence campaign aimed at “Trump world,” highlighting that Bankman-Fried’s family is “actively working with a firm” to secure a pardon. She asserts, “There is a highly mobilized and well-funded effort on the right to lobby Trump world to pardon Crypto scammer Sam Bankman-Fried, who was the second-largest donor to the Democrat Party after George Soros.” Loomer insists that this initiative “needs to be exposed and shut down.” She attributes the rise in discussions to what she terms an “inorganic” campaign by conservative influencers, depicting Bankman-Fried as a victim following his reported solitary confinement after a jailhouse interview with Tucker Carlson.
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Deaton’s Strong Response to Clemency Efforts
John E. Deaton, a leading crypto-side litigator known for his criticism of regulatory excess, issued a stern warning to the White House. “Let me be clear: any effort to pardon or commute the sentence of the Bernie Madoff of Crypto – SBF – should be squashed immediately,” he emphatically stated, directing his message to “Mr. President Donald Trump” and labeling such a move “a slap in the face of justice and innocent investors.”
Deaton further called for renewed examination of campaign-finance issues and scrutinized the roles of Bankman-Fried’s parents. He emphasized the necessity of revisiting well-documented instances where Bankman-Fried exploited political connections during crypto’s previous bull cycle. “In fact, Pam Bondi should re-open the case against him for violating campaign finance laws. His father, Joe Bankman, should be investigated for facilitating the creation of shell companies used to defraud individuals. Joe Bankman was the architect of Elizabeth Warren’s tax policies during her presidential run and is no stranger to tax evasion tactics,” Deaton elaborated.
Family Ties and Legal Implications
Deaton did not hold back regarding Bankman-Fried’s mother either: “His mother, Barbara Fried, should also be investigated. She runs Mind The Gap – a political Super PAC – and assisted her son in becoming the second-largest donor to the Democrat Party.” He concluded by stating, “SBF’s parents were participants in his criminal enterprise. They possessed luxury Bahamian properties in their names worth tens of millions and received $10 million in cash stolen from FTX customers. Due to their political connections, they were never indicted.”
The Stark Legal Realities Facing Bankman-Fried
The legal landscape for Bankman-Fried is severe. On March 28, 2024, US District Judge Lewis A. Kaplan sentenced him to 25 years in prison for orchestrating “multiple fraudulent schemes,” with the Southern District of New York securing an $11 billion forfeiture judgment. This enormous clawback reflects the court’s assessment of the scale of harm inflicted on customers, investors, and lenders. The sentence came after a jury convicted Bankman-Fried in 2023 on fraud and conspiracy charges related to the misuse of FTX customer assets through Alameda Research.
Campaign-finance allegations have shadowed Bankman-Fried since 2022. In mid-2023, SDNY prosecutors dropped one campaign-finance charge due to extradition grounds after the Bahamas, where Bankman-Fried was arrested, indicated it had not consented to extradition on that count. The federal fraud case proceeded without that charge at trial, resulting in convictions on the remaining counts.
At the time of writing, the total cryptocurrency market capitalization stands at $3.8 trillion.
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