Senator Kennedy Grills SEC Nominee on Possible SBF Pardon

During a Senate Banking Committee hearing on March 27, Senator John Kennedy questioned SEC nominee Paul Atkins on whether the agency would address any attempts to secure a pardon for Sam Bankman-Fried. The Louisiana senator voiced concerns about fairness in the legal system, stating, 

“We cannot have one set of rules for the powerful and another for everyone else. The law has to apply equally to all Americans.”

Kennedy also pressed Atkins on donations made by Bankman-Fried’s family to Stanford University. He criticized the SEC’s handling of the case and warned Atkins that he would continue to demand accountability.

 “If you come before this committee again, expect me to be on your case every single time,” he said. “I am not letting this go.”

Concerns Over Potential Presidential Pardon

Reports surfaced in January that Bankman-Fried’s parents were seeking a presidential pardon from newly elected U.S. President Donald Trump. The request reportedly followed Trump’s high-profile pardon of Silk Road founder Ross Ulbricht, who had been serving a life sentence without parole.

Kennedy made it clear that he expects the SEC to take a firm stance on the matter. “I saw reports that Bankman-Fried’s family is pushing for a pardon. This is a man who stole billions, and I want to know what the SEC is doing to stop any special treatment,” he stated. The senator’s comments reflect concerns that Bankman-Fried, convicted of defrauding FTX customers, might receive preferential treatment.

Differences Between SBF and Ulbricht Cases

White Collar Support Group executive director William Livolsi explains Bankman-Fried will not likely get a pardon through because his case varies from the one Ross Ulbricht faced. Proofs show that Bankman-Fried received financial fraud convictions for running transactions along Silk Road while Ulbricht ran a platform that allowed illegal operations.

Trump made a campaign promise to pardon Ulbricht during his race for president and this political endorsement strengthened his pardon for Ulbricht. No promises for a pardon exist for Bankman-Fried thus diminishing his chances of receiving clemency.

Bankman-Fried’s Attempts to Gain Support

Bankman-Fried has lately reached out to conservative media and political leaders for assistance. In February, he did an interview with The New York Sun and subsequently talked with Tucker Carlson, in which he condemned his conviction and asserted that he was treated unjustly.

The conversation with Carlson, nonetheless, was not approved by prison officials, resulting in disciplinary measures. After the interview, Bankman-Fried was put in solitary confinement and subsequently moved from a prison in New York to one in Oklahoma.

Senator Kennedy’s comments indicate ongoing examination of Bankman-Fried’s legal situation and any attempts to facilitate his release. The nominee for the SEC’s response to these issues could influence the agency’s handling of prominent financial fraud cases in the future.