In a stunning move that shook the crypto world, Donald Trump granted a full pardon to Binance founder Changpeng Zhao (CZ), igniting speculation that FTX founder Sam Bankman-Fried could be next.
Trump’s Crypto Pardon Sends Shockwaves Through the Market
Former President Donald Trump’s decision to pardon Changpeng Zhao, the founder of Binance, has electrified the cryptocurrency industry. CZ, who served a four-month prison term after pleading guilty to violating U.S. anti-money laundering laws, is now free — and the crypto community is celebrating.
The pardon marks a new chapter in Trump’s openly pro-crypto stance. During his campaign, he pledged to make the United States “the global leader in digital assets,” a promise he appears intent on keeping. His administration has already taken several steps to reshape crypto regulation and sentiment.
Trump has previously pardoned other figures tied to the digital asset sector, including Silk Road founder Ross Ulbricht and the BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed. With Zhao now cleared, the market’s attention has swiftly turned to one of crypto’s most notorious names — Sam Bankman-Fried.
Polymarket Traders Bet Big on an SBF Pardon
Crypto traders are already speculating about what could come next. On prediction platform Polymarket, traders are betting that Trump may extend clemency to Sam Bankman-Fried, the founder of the collapsed FTX exchange.
According to the latest data, a Polymarket market holding $40,904 in assets shows a 16% chance that Trump will pardon Bankman-Fried. That figure marks a sharp rebound from an intraday low of 4.2%.
In a separate market with over $6.5 million in assets, SBF’s pardon odds stand at 11%, ranking him third behind Roger Ver and music mogul Sean “Diddy” Combs, who was recently sentenced to more than four years in prison.
Traders are reading between the political lines, with many citing Trump’s public support for crypto and his history of using pardons to send symbolic messages about policy priorities.
A Pattern of Crypto-Friendly Pardons
The CZ pardon fits into a broader pattern of clemency for figures connected to digital finance. Trump’s list this year includes several high-profile white-collar cases such as Ozy Media’s Carlos Watson and Nikola founder Trevor Milton.
This trend aligns with Trump’s positioning as the “crypto president.” Beyond pardons, he has:
Launched pro-crypto initiatives such as the World Liberty Finance project and the TRUMP token, aimed at promoting decentralized finance in America.
Signed the GENIUS Act, which sets clearer standards for crypto taxation and innovation.
Appointed Pul Atkins, a long-time crypto advocate, to lead the U.S. Securities and Exchange Commission (SEC).
These moves have emboldened the industry, which has long sought friendlier treatment from Washington. Market analysts note that Trump’s actions have injected optimism back into digital asset markets, particularly among retail traders who view him as a champion of financial freedom.
The Case for an SBF Pardon
While Bankman-Fried’s conviction was one of the most notorious in financial history, some observers believe Trump may consider a pardon.
There are two main arguments in favor of it.
First, Trump has criticized prosecutions led by the Biden administration, framing them as politically motivated attacks on the crypto industry. In his statement announcing Zhao’s pardon, Trump said:
“President Trump exercised his constitutional authority by issuing a pardon for Mr. Zhao, who was prosecuted by the Biden Administration in their war on cryptocurrency. In their desire to punish the cryptocurrency industry, the Biden Administration pursued Mr. Zhao despite no allegations of fraud or identifiable victims.”
Second, many victims of the FTX collapse have since been compensated. The FTX estate has recovered and repaid over $16.5 billion, restoring balances for most customers as they were before the crash. While investors missed out on the gains they might have earned during the subsequent crypto rally, their principal holdings were largely restored.
This repayment could soften the perception of SBF’s crimes, making a political pardon less controversial than it might have been a year ago.
SBF’s Family and Media Push Add to Speculation
Adding to the intrigue, SBF’s mother has recently appeared on several talk shows advocating for leniency. She has argued that her son’s actions were “misguided but not malicious.” Meanwhile, Bankman-Fried himself sat for a lengthy interview with Tucker Carlson, a well-known Trump ally.
Insiders say this could be part of a strategic campaign to build public sympathy and test the waters for a future pardon request. Carlson has previously voiced skepticism about the fairness of the prosecution, suggesting that “political pressure” shaped the outcome.
Political analysts note that such media appearances are often precursors to formal clemency appeals. If Trump continues to position himself as a defender of crypto innovators against government overreach, the odds of a pardon could rise even further.
How Trump’s Crypto Stance Impacts the Industry
The Trump administration’s recent actions are having tangible effects across the market. Following news of Zhao’s pardon, Bitcoin prices rose briefly above $73,000, and several exchange-linked tokens saw double-digit gains.
Crypto investors see this as a signal that Washington may shift toward friendlier regulations, particularly if Trump continues his pro-digital asset agenda. Market observers say the combination of policy clarity, leadership changes at the SEC, and symbolic pardons could spark a new wave of innovation.
Here is a quick summary of Trump’s key crypto actions in 2025:
| Action | Description | Impact |
|---|---|---|
| Pardon of CZ | Cleared Binance founder | Boosted trader confidence |
| GENIUS Act | Regulatory framework for crypto | Provided legal clarity |
| SEC leadership change | Appointed Pul Atkins | Expected to reduce enforcement pressure |
| World Liberty Finance | Launched USD1 stablecoin | Encouraged institutional adoption |
The ripple effects of these actions are already visible as venture capital interest in blockchain startups rises again and trading volumes on U.S.-based exchanges climb steadily.
The crypto industry stands at a critical turning point. With Trump’s continued influence and the market’s renewed optimism, digital assets are once again entering the mainstream political conversation. Whether Sam Bankman-Fried receives a pardon or not, the CZ decision has already reshaped the landscape of crypto regulation and perception in America.
Do you think Trump should pardon SBF next? Share your thoughts on social media and join the discussion.
