Trump Pardons BitMEX Founders: Crypto Community Reacts
Trump Pardons BitMEX Founders
Former President Trump issued pardons to the three BitMEX co-founders who pleaded guilty to violating the Bank Secrecy Act (BSA) in 2022. This decision, unlike the pardon of Ross Ulbricht, lacks widespread community support, creating significant unease.
The BitMEX founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, admitted to failing to implement adequate anti-money laundering (AML) and know-your-customer (KYC) programs between 2015 and 2020. Despite claiming BitMEX didn't serve US customers, they knew the platform had substantial US user activity. Each paid a $10 million fine, and BitMEX itself was fined $100 million.
The pardons, issued without public explanation, have prompted criticism. While each founder had already completed their sentences (fines, probation, and house arrest), the lack of transparency surrounding the decision fuels speculation and distrust.
Will Sam Bankman-Fried Be Next?
The BitMEX pardons have led to increased speculation about a potential pardon for Sam Bankman-Fried (SBF), former CEO of FTX. SBF and his family have reportedly lobbied Trump for a pardon. The odds of this happening on Polymarket have increased following the BitMEX news, indicating a growing perception of increased probability.
Unlike Ulbricht's pardon, which followed significant community support, the BitMEX pardons face overwhelmingly negative sentiment within the crypto space. Even previous supporters of regulatory action against BitMEX, such as Hester Peirce, expressed support for the original arrests. The lack of a clear rationale for these pardons, coupled with the ongoing prevalence of scams within the industry, has heightened concerns about the integrity of the regulatory process and the potential to embolden future bad actors.
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The situation underscores the need for stronger regulatory frameworks and clearer guidelines surrounding enforcement and potential pardons to maintain industry confidence and protect investors.