NEW YORK —
Sam Bankman-Fried has re-emerged in the public sphere with a
controversial endorsement that intertwines international politics with
his own bid for freedom. In a statement posted to social media via a
proxy this week, the disgraced FTX co-founder applauded the reported
pardon of former Honduran President Juan Orlando Hernández, writing,
"I’m so glad Juan Orlando is free; few people deserve it as much as he
does."
The
comments follow reports that Donald Trump granted clemency to Hernández
on Tuesday, cutting short a 45-year federal prison sentence for drug
trafficking handed down less than two years ago.
A Public Campaign from Behind Bars
Bankman-Fried,
currently serving a 25-year sentence following his 2023 conviction for
fraud and conspiracy related to the collapse of the FTX cryptocurrency
exchange, doubled down on his support in a subsequent post. He described
Hernández as "one of the kindest and most dedicated people I’ve met," a
characterization that stands in stark contrast to the U.S. Justice
Department's description of the former head of state as a co-conspirator
in state-sponsored drug trafficking.
The
posts, explicitly labeled as Bankman-Fried’s own words dictated to a
friend, appear to be part of a broader strategy to remain visible as his
legal team navigates a difficult path forward. While his lawyers are
currently petitioning the U.S. Court of Appeals for the Second Circuit
for a retrial—a process that could drag into 2026—Bankman-Fried is
simultaneously exploring the possibility of a presidential pardon.
Political Headwinds and Family Involvement
The
push for executive clemency faces significant hurdles. Bankman-Fried’s
political history complicates any request to the incoming Trump
administration; he was a prolific donor to Democratic causes,
contributing $5.2 million to Joe Biden’s 2020 campaign.
Despite
these odds, sources indicate that Bankman-Fried is not acting alone.
His parents, law professors Joseph Bankman and Barbara Fried, have
reportedly been quietly supporting discussions regarding a potential
pardon. These efforts have gained fresh attention following reports that
Trump recently granted a pardon to Binance CEO Changpeng Zhao, fueling
speculation within the digital asset industry that other crypto-figures
might receive similar treatment.
Re-litigating the Collapse
Beyond
the pardon push, Bankman-Fried has used his limited digital reach to
challenge the official narrative of FTX's demise. In recent months, he
has repeatedly asserted via intermediaries that the exchange was solvent
at the time of its bankruptcy filing. He alleges that the current
bankruptcy administrators are either mismanaging the recovered funds or
obscuring the true state of the company's finances—claims that directly
contradict the findings of federal investigators and the court-appointed
liquidators.
Legal
experts and former prosecutors remain skeptical of his chances. The
sheer scale of the losses at FTX, combined with the intense public
scrutiny surrounding the case, makes Bankman-Fried a politically toxic
candidate for clemency. However, by linking his situation to the pardon
of Hernández, Bankman-Fried appears determined to keep his case in the
court of public opinion while his appeals play out in the legal system.
LATEST DEVELOPMENTS & MARKET CONTEXT
The "Crypto-Clemency" Narrative
The
pardon of Juan Orlando Hernández, and the speculation surrounding
Changpeng Zhao (CZ), has triggered a wave of discussion regarding the
incoming administration's stance on white-collar crime in the crypto
sector. Analysts note that while SBF is attempting to ride this wave,
the distinction between regulatory violations (CZ) and massive
misappropriation of customer funds (SBF) remains a critical legal
differentiator that likely isolates Bankman-Fried from broader industry
relief.Impact on FTX Creditors
Bankman-Fried's
public assertions that FTX was solvent are creating friction in the
ongoing bankruptcy proceedings. While the estate has begun the process
of returning billions to creditors—aided by the crypto market's recent
bull run—SBF’s narrative threatens to undermine confidence in the
recovery team. However, market observers note that these comments have
had little impact on the value of bankruptcy claims, which are trading
near par value.Political "Toxic Touch"
Political
strategists suggest that SBF’s praise of a convicted drug trafficker
(Hernández) may backfire. By aligning himself with a controversial
foreign figure, Bankman-Fried risks further alienating the very
political establishment he needs to secure a sentence reduction or
pardon.
FREQUENTLY ASKED QUESTIONS (FAQ)
Q: What did Sam Bankman-Fried say about the former Honduran president?
A:
Bankman-Fried expressed joy at the reported pardon of Juan Orlando
Hernández, stating that "few people deserve it as much as he does" and
describing him as one of the "kindest" people he has met.
Q: Why is SBF commenting on this now?
A:
The comments are viewed as an attempt to stay in the public eye and
implicitly advocate for his own pardon. By highlighting an instance of
executive clemency, he is drawing attention to his own request for
relief.
Q: What is the status of SBF’s legal appeal?
A:
His legal team has filed for a retrial with the U.S. Court of Appeals
for the Second Circuit, arguing there were errors in the original trial.
A decision is not expected immediately and could take until 2026.
Q: Is it likely that Trump will pardon Bankman-Fried?
A:
Most legal experts consider it highly unlikely. Bankman-Fried was a
major donor to Joe Biden, and the theft of customer funds at FTX was
massive. However, SBF’s family is reportedly lobbying for the option.
Q: Are FTX customers getting their money back?
A:
The bankruptcy estate has recovered substantial assets, and plans are
in motion to repay customers, in some cases with interest based on the
petition date value. However, SBF claims the estate is mismanaging funds
that could have resulted in even higher returns.
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