Bankman-Fried Seeks Trump Pardon, LayerZero Settles with FTX Estate

Jailed FTX founder Sam Bankman-Fried, is now seeking clemency from President Donald Trump. Meetings by his parents, Stanford Law School professors Joseph Bankman and Barbara Fried, with lawyers and key figures in Trump’s orbit have fueled rumors about a potential pardon.

The crypto innovator-turned-convicted felon got a 25-year sentence in March 2024, for the forfeiture of $8 billion from FTX customers. Since then, more than two dozen letters were filed to plead for the judge’s leniency. Bankman-Fried’s lawyers also requested US District Judge Lewis Kaplan to punish him for not more than 6.5 years, citing his mental condition and charitable deeds.

SBF vs. Ulbricht: A Tale of Two Pardons

While there’s no official confirmation from the White House, Trump’s pardon of Silk Road founder Ross Ulbricht and the changing stance on cryptocurrency is seen by many as the next potential chapter in Trump’s pro-crypto narrative.

Bankman-Fried, who has described his sentence as “draconian,” lacks the same grassroots support that Ulbricht got from libertarians and crypto enthusiasts.

Nevertheless, Trump’s shift from crypto skepticism to support and the recent meeting with his parents has sparked hope among white-collar defendants. As of now, legal representatives for Bankman-Fried, who has already filed an appeal against his 2023 conviction, declined to comment.

LayerZero Settles with FTX Estate

The development comes alongside a significant legal breakthrough for the FTX estate. After two years of intense legal battle, LayerZero CEO confirmed a settlement agreement with the FTX estate. “Ultimately, we decided this was not us versus FTX but us versus creditors,” the CEO stated, emphasizing the return of the original repurchase amount to the estate.

FTX pursued legal action against LayerZero Labs to recoup more than $21.3 million in cryptocurrency deposits made in 2022. The withdrawal took place in the 90 days before FTX’s declaration of bankruptcy. The resolution comes at a significant cost, underscoring the prolonged challenges faced by the defunct exchange and its creditors.