Trump’s Crypto Pardons: BitMEX Founders Walk Free, More to Come?
In a major shake-up for the crypto industry, former U.S. President Donald Trump has officially pardoned the co-founders of BitMEX—Arthur Hayes, Benjamin Delo, and Samuel Reed. The three were convicted in 2022 for violating the Bank Secrecy Act, leading to a $100 million penalty for BitMEX over non-compliance with anti-money laundering laws. Now, with their records cleared, the decision has reignited discussions about the future of crypto regulations in the U.S.
Arthur Hayes took to social media to express his gratitude, posting, “Thank you, President Trump.” The pardon grants the trio a fresh start, raising questions about whether more crypto-related pardons could be on the horizon. Many industry watchers are speculating whether Terra’s embattled founder, Do Kwon, could be next in line.
A Turning Point for Crypto Regulation?
Trump’s decision to pardon the BitMEX executives suggests a softer stance on crypto-related legal matters. The move follows his previous pardon of Ross Ulbricht, the controversial founder of the Silk Road marketplace. This pattern signals a potential shift in how financial crimes tied to digital assets are handled under Trump’s influence.
While some view these pardons as a win for the crypto community, others remain skeptical. Critics argue that overlooking past financial misconduct could set a dangerous precedent, making it easier for bad actors to escape accountability.
Peter Schiff Blasts Trump’s Decision
Not everyone is celebrating. Well-known Bitcoin skeptic Peter Schiff voiced his disapproval of the pardons, calling them a questionable move. While he has often criticized anti-money laundering laws, Schiff argued that the BitMEX founders knowingly broke the rules and should be held accountable.
Schiff also shared his own experience with regulatory scrutiny, revealing that the IRS attempted for years to charge him with financial crimes but ultimately failed due to a lack of evidence. His criticism has added fuel to the debate surrounding Trump’s latest crypto-related actions.
Trump’s Second Big Pardon: Nikola Founder Trevor Milton Walks Free
In addition to the BitMEX co-founders, Trump also pardoned Trevor Milton, the former CEO of Nikola Corporation. Milton was convicted in 2022 for misleading investors about his company’s progress in electric vehicle production. In December 2023, he was sentenced to four years in prison, with prosecutors seeking $680 million in restitution for Nikola shareholders. However, the presidential pardon now prevents any further financial penalties from being imposed on him.
This decision has sparked controversy, particularly among investors who suffered losses due to Milton’s misleading claims. Many argue that allowing corporate figures to walk free sends the wrong message to financial markets.
Will Do Kwon Be the Next Crypto Figure Pardoned?
With Trump’s recent pardons making waves, speculation is mounting over whether Terraform Labs co-founder Do Kwon could receive similar clemency. Kwon remains embroiled in legal battles with U.S. regulators over the catastrophic collapse of TerraUSD, which wiped out billions in investor funds.
If Trump were to grant Do Kwon a pardon, it could have a profound impact on the crypto industry. Supporters believe it might restore confidence in Terra and encourage investors to back the project again. Additionally, it could reshape the way regulatory bodies approach crypto enforcement, signaling a more lenient attitude toward blockchain innovators.
For now, the industry watches closely as Trump’s actions continue to influence the legal landscape of digital finance. Will more crypto leaders receive pardons, or is this just a one-time move? Only time will tell.
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