By Key Points
- Trump Shocks Crypto World With BitMEX Founders Pardon
- No public support or campaign called for their release
- Crypto community expresses concern over future high-profile pardons
- Odds of SBF getting a pardon skyrocket on Polymarket
In a shocking turn of events, President Donald Trump has granted a full pardon to the three BitMEX co-founders—Arthur Hayes, Benjamin Delo, and Samuel Reed—despite their 2022 convictions for violating anti-money laundering (AML) laws. The crypto world is reeling from the decision, which came without any prior hint or public demand.
The founders had knowingly allowed U.S. customers on BitMEX while failing to implement the required Know Your Customer (KYC) protocols. As a result, they pled guilty and paid $10 million each in fines, while BitMEX itself paid a $100 million penalty earlier in 2025.
🇺🇸 Donald Trump just granted pardons to three co-founders of the BitMEX cryptocurrency exchange.
The co-founders, Arthur Hayes, Benjamin Delo and Samuel Reed, previously pled guilty to a range of federal criminal charges related to money laundering pic.twitter.com/mTj9nuHYMi
— Ajay Kashyap (@EverythingAjay) March 29, 2025
What’s raising eyebrows is the timing and secrecy of the pardons. None of the recipients were in jail. There was no press release, no media event—just a quiet presidential signature. The move echoes recent discussions in the crypto world around potential corruption and political maneuvering, similar to the ongoing scrutiny discussed in Trump’s crypto corruption warning.
Even seasoned regulators and crypto advocates, like SEC Commissioner Hester Peirce, had once supported actions against BitMEX. Now, the lack of transparency behind these pardons is leading many to question whether the line between regulation and favoritism is starting to blur.
🔥 WATCH: Trump pardons BitMEX co-founders – Arthur Hayes, Benjamin Delo, and Samuel Reed pic.twitter.com/srwovpF5ft
— Cult of Blockchain (@BlockchainCult) March 28, 2025
Could Sam Bankman-Fried Be Next in Line?
The BitMEX founders’ pardon has led to a surge in speculation that Sam Bankman-Fried (SBF) could be next. On Polymarket, odds of SBF receiving a presidential pardon jumped significantly after the news broke.
Bankman-Fried, the former FTX CEO, is currently serving time for one of the largest frauds in crypto history, with billions in customer funds missing. His family has reportedly lobbied Trump, although his 2020 opposition to Trump had previously made a pardon seem unlikely.
Sam Bankman-Fried Pardon Odds. Source: Polymarket – Techtoken
Now, with this new wave of crypto-friendly pardons, the landscape seems to be shifting. This development builds on the broader narrative of Trump’s complex relationship with crypto, as seen in recent moves like his Binance backchannel deal (read more) and his proposal for a strategic Bitcoin reserve for the U.S. government (explore here).
Commentator Jacob Silverman summed up the concern, saying, “My God, everything is for sale. I think he’ll pardon Sam Bankman-Fried.”
My god everything is for sale. I think he’ll pardon SBF. https://t.co/dNOiCtBVP9
— Jacob Silverman (@SilvermanJacob) March 28, 2025
This sentiment reflects a broader unease: is this the beginning of a pattern where influence and connections override justice in crypto?
Crypto Trust Crisis Looms as Pardons Mount
The BitMEX founders pardon isn’t just about three individuals—it’s about the message it sends to the entire crypto ecosystem. With scams, rug pulls, and frauds on the rise, the industry is already navigating a fragile phase of trust.
Many now fear that high-profile legal actions could be undone with a signature, reducing the deterrent effect of regulation. The crypto world has fought hard to shake off its Wild West image. But these kinds of decisions risk undermining years of credibility-building efforts.
Meanwhile, crypto markets continue to digest the impact. The political uncertainty, compounded by Trump’s sudden interventions, mirrors previous market shocks such as the Trump tariff war Bitcoin boom, when Bitcoin surged on geopolitical instability.
In the same vein, regulatory clarity is becoming more essential. As exchanges like Coinbase expand offerings with products like BNB perpetual futures, traders and investors alike are demanding clearer guardrails.
There’s also growing scrutiny on how token listings are handled by major platforms, especially in light of recent developments in Binance token listings—a reminder of how transparency and accountability are still very much up for debate in Web3.
The pardoning of BitMEX’s founders may seem like a one-off political move, but to many, it’s yet another crack in an already fragile trust structure. Whether it’s SBF next or someone else, one thing is becoming clear: crypto regulation and politics are more intertwined than ever before.
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