President Trump Pardons Arthur Hayes and Other BitMEX Founders

President Trump just issued a pardon to three BitMEX co-founders who pled guilty to money laundering charges in 2022. Unlike the case of Ross Ulbricht, there was no popular movement for these pardons, sparking community confusion.

Meanwhile, Polymarket’s odds of FTX’s Sam Bankman-Fried receiving a pardon also went up after this news. The crypto community is somewhat uneasy with the US president pardoning high-profile individuals who have pled guilty to evident wrongdoings.

Trump Issues BitMEX Pardons

BitMEX is a centralized exchange with a long history in the crypto space, but it has faced its share of controversies. In 2020, it was sued in the US for alleged money laundering.

Its founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, pled guilty to violating the Bank Secrecy Act, but President Trump just pardoned all three in a shocking move.

Trump did little to publicize these pardons, as neither he nor any of the recipients have yet made a public statement regarding the move. These men only faced fines, probation, and house arrest, and all were completely free at the time. Arthur Hayes remains an influential commentator, but he has no further involvement with BitMEX.

To call this move unexpected would be an understatement. Trump has given other crypto-related pardons, like with Ross Ulbricht, to be fair.

However, Ulbricht’s case was a cause célèbre in the community. There were no corresponding vocal calls to issue BitMEX pardons, especially considering the founders’ light sentences.

In short, most of the crypto space’s reactions have been negative. At the time, even government crypto allies like “Crypto Mom” Hester Peirce supported the BitMEX arrests, and money laundering has never been popular in the space. The crypto community is struggling to find a clear motivation for Trump’s pardons other than outright corruption.

“My God, everything is for sale. I think he’ll pardon Sam Bankman-Fried,” said author Jacob Silverman.

For the last few months, FTX mastermind Sam Bankman-Fried and his family have been lobbying President Trump for a pardon. The community mostly considered this possibility a long shot, especially because Bankman-Fried directly opposed Trump in the 2020 election. Since the BitMEX pardons, Bankman-Fried’s Polymarket odds have shot up:

Sam Bankman-Fried Pardon Odds. Source: Polymarket

In short, it doesn’t even look like this will be bullish for the markets. The crypto industry is in an unprecedented wave of scams, and some commentators worry that it could damage industry confidence. If Trump continues issuing pardons without a clear reason, it may embolden bad actors.