Trump Is Shaking Things Up in Crypto Again! This Time, He's Handing Out Pardons

Trump is shaking things up in crypto again! This time, he's handing out pardons, and the latest beneficiaries are BitMEX co-founders Arthur Hayes

Former President Donald Trump has granted pardons to Arthur Hayes, Benjamin Delo, and Samuel Reed, the co-founders of cryptocurrency exchange BitMEX, who were previously convicted of illegally accepting U.S. bank deposits at the exchange.

Having pleaded guilty to the charges last year, the executives have now been fully pardoned, despite earlier reports indicating that Trump would not be granting any pardons.

The BitMEX founders were initially slapped with hefty $30 million fines and prison sentences for their role in facilitating more than $150 billion in bitcoin trades via BitMEX between 2015 and 2020 without the required licenses.

However, in a surprising turn of events, they reached a plea deal with the government in December, leading to the lighter prison terms and an early release for the executives in November.

Now, Trump’s move to pardon the BitMEX founders completely clears their legal records. This decision comes shortly after Trump granted clemency to Ross Ulbricht, the founder of the Silk Road dark web marketplace, who was sentenced to life in prison for drug trafficking offenses.

Both cases highlight Trump’s softer stance on offenses related to the cryptocurrency industry.

As the legal battle between Terra’s Do Kwon and the SEC unfolds, some members of the crypto community are speculating whether Trump could intervene with a pardon.

Kwon, the founder of the beleaguered Terra ecosystem, is currently facing fraud charges from the SEC for allegedly defrauding investors with his crypto ventures.

Those who believe in the possibility of a pardon highlight Trump’s history of granting clemency to high-profile individuals, including Alice Marie Johnson, whose sentence for a first-time drug offense was commuted in 2018.

The SEC recently dropped charges against Hailey Welch, an influencer who was allegedly involved in the BANK and HAWK tokens.

This decision marks a shift in the regulator’s approach, which previously saw the agency aggressively pursue individuals and firms for perceived violations.

Despite the closed cases, the SEC is still actively engaged in crypto-related cases.

Earlier this year, the regulator sued several prominent figures, including crypto exchange Gemini and its executives in an ongoing case concerning the agency’s ability to register new crypto products.

Moreover, Trump’s nominee to lead the SEC, Paul Atkins, is expected to bring a different leadership style compared to outgoing Chair Gary Gensler.

While Gensler focused heavily on enforcement actions and reached settlements in several cases, Atkins is known for his advocacy for a structured and transparent regulatory framework.

Many believe that institutional investment and the broader adoption of digital assets could be encouraged by Atkins’ leadership. However, his own crypto investments, valued at nearly $6 million, have raised concerns about potential conflicts of interest.

As the industry navigates the evolving regulatory landscape, Trump’s recent decisions could have a significant impact on the future of crypto in the U.S.