Trump's pardon economic exposure! FTX founder seeks release, Washington's gray industry chain exposed

As Trump frequently exercises his presidential pardon power during his second term, a “pardon ecosystem” centered around lobbying, networks, and political narratives is rapidly taking shape in Washington, with crypto tycoons, white-collar criminals, and foreign officials all vying for a seat at the table.

FTX Founder SBF Seeks Trump Pardon, Hires White House Lobbying Firm

When Sam Bankman-Fried (SBF) witnessed Trump repeatedly pardoning multiple scammers and other white-collar criminals this year, the former crypto giant also began to consider: could he join this ranks?

Sources familiar with the matter told the Financial Times that representatives of Bankman-Fried had contacted Mercury, a Washington lobbying firm. Bryan Lanza, a partner at Mercury, previously worked for Trump in 2016 and emphasized his White House connections in his lobbying resume. Bankman-Fried is currently serving a 25-year sentence for fraud.

As a former major Democratic donor, Bankman-Fried is following an increasingly established path—petition a president who has pardoned dozens of donors and political allies. He recently posted on social media criticizing the Department of Justice during Biden’s administration as “corrupt beyond measure,” attempting to portray himself as a victim of “judicial weaponization.”

Mercury declined to comment on the contact, and Lanza did not respond to interview requests. But this move clearly indicates: during Trump’s era, the presidential pardon power is evolving from a constitutional fringe into a re-priced political business.

Pardons Become Rational Choices, Intermediaries Charge Millions

Historically, U.S. administrations have sought presidential pardons through lobbying, but the scale and frequency during Trump’s second term far surpass previous periods. A criminal defense lawyer stated that, in the current environment, seeking a Trump pardon has become “a rational choice.”

“It happens almost daily. It’s a route outside the judicial system that, in theory, can make your case completely disappear,” the lawyer said.

Some intermediaries are even asking as much as $1 million to help clients get their pardon requests “delivered to the core circle of the White House.” One lawyer described this as evolving into an “industrial-scale pardon business.”

Since pardons can exempt individuals from fines and liabilities, some convicted persons are willing to promise intermediaries a share of the potential savings, often amounting to millions of dollars. This “success fee” model incentivizes lobbying firms and intermediaries to push cases forward.

Trump has appointed his ally Ed Martin as the presidential pardon lawyer and established a “Pardon Office,” headed by former inmate Alice Marie Johnson. However, several involved in the pardon process point out that the most important factor is not the procedure but whether one can access the president’s inner circle.

Roger Stone, a political consultant pardoned by Trump in 2020, was confirmed to have served as an intermediary, helping former Honduran President Juan Orlando Hernández seek a pardon. Hernández was convicted earlier for assisting in smuggling about 400 tons of cocaine into the U.S. and was granted a pardon earlier this month.

Trump stated he “knows little” about Hernández but claimed the Honduran government had “weaponized the judiciary.” This narrative aligns closely with Trump’s own claims of experiencing “political witch hunts.”

Crypto Industry Becomes a Hotspot for Trump Pardons, Binance Founder Released

Earlier this year, Binance hired lobbyists closely connected to Trump, with records explicitly mentioning “administrative relief.” Subsequently, Binance co-founder CZ received a pardon from Trump in October.

Trump told CBS he does not know CZ, only “heard it was a Biden-style political persecution.” This raised questions about the standards Trump uses to exercise his pardon power.

Similar cases include Nikola founder Trevor Milton, who was convicted of misleading investors and later pardoned after donating nearly $1 million to pro-Trump organizations; and nursing home owner Joseph Schwartz, who paid nearly $960,000 to pro-Trump lobbyists before receiving a pardon.

White House officials insist that pardon decisions are made through “compliant legal procedures” and deny that lobbying directly influences the outcomes. But increasing evidence suggests that political donations, lobbying relationships, and narrative-building are becoming key factors in obtaining pardons.

Narrative of Judicial Weaponization Becomes a Shortcut

Several insiders familiar with the pardon process say one of the most effective strategies is convincing Trump that they share a common “enemy”—a politicized, weaponized judicial system.

Trump has long claimed that during Biden’s administration, he faced “political witch hunts,” with multiple criminal charges and civil lawsuits. This “judicial weaponization” narrative is increasingly being adopted by pardon applicants.

Recently, Bankman-Fried, in an interview with conservative commentator Tucker Carlson from prison, also claimed to be a victim of judicial politicization, and posted on social media that Trump “knows how rotten Biden’s Department of Justice is.”

The core of this strategy is: no longer argue the legal facts or evidence of crimes, but shift focus to “procedural justice” and “political motives.” If one can persuade Trump that they are victims of the “deep state” or “Democratic Party’s judicial weaponization,” a pardon may be within reach.

A lawyer who has helped clients apply for pardons said, “You don’t need legal arguments; you need a political narrative. Make him believe that pardoning you is fighting his enemies.”

Not Everyone Can Copy Success, Pardons Remain Selective

Nevertheless, not everyone who seeks favor will receive a pardon. Elizabeth Holmes, founder of Theranos, publicly supported Trump-related health initiatives but remains incarcerated; former Democratic Senator Bob Menendez defends himself on grounds of “judicial injustice” but has not been pardoned; and Do Kwon, founder of Terraform Labs, has his lawyer explicitly emphasize “no political contacts” in court.

These cases show that Trump’s pardon decisions remain selective. But the criteria seem to have shifted from traditional legal considerations to more about: whether one has enough political connections; whether one can pay high lobbying fees; and whether one can effectively craft a “judicial weaponization” narrative.

Analysts note that Trump’s presidential pardon power is evolving from an exceptional constitutional authority into a highly politicized, relationship-driven mechanism. Who can craft the narrative and reach the core circle is becoming more decisive than the legal facts themselves.

For the crypto industry, this trend is both an opportunity and a warning. On one hand, CZ’s success shows that even facing serious charges, with the right strategy, a pardon is possible; on the other hand, it highlights the increasingly blurred lines between the U.S. judicial and political systems, and the critical role money plays within.

In the coming months, as more cases surface, how this “pardon economy” in Washington evolves—and its long-term impact on the U.S. judicial system—deserves ongoing attention.