Pardon me, have you heard about all the recent crypto-related presidential pardons?
A presidential pardon is a significant authority granted to the President of the United States by the U.S. Constitution, allowing for the forgiveness of federal crimes. Once issued, a pardon can’t be overturned. Not by Congress. Not by the courts.
Historical Context of Pardons
Controversial pardons aren’t a new thing. In 1974, President Gerald Ford pardoned former President Richard Nixon after the Watergate scandal. Some people thought it helped the country move on, while others believed it let him escape punishment.
In 2001, President Bill Clinton pardoned financier Marc Rich, who had left the U.S. to avoid charges like tax evasion and illegal trading. That decision was criticized by people who questioned whether it was fair and whether the pardon process was being used properly.
Recent Crypto Industry Pardons
In 2025, President Donald Trump pardoned several figures from the cryptocurrency industry who had been convicted of violating U.S. financial laws, including:
- Arthur Hayes (BitMEX): As CEO and co-founder of BitMEX, Hayes pleaded guilty in 2022 to violating the Bank Secrecy Act (BSA) by failing to implement an adequate anti-money laundering (AML) program at the exchange. He received a sentence that included six months of home confinement, two years of probation, and a $10 million fine. President Trump granted him a full pardon on March 28, 2025.
- Benjamin Delo (BitMEX): Also a co-founder of BitMEX, Delo faced similar charges and, in 2022, pleaded guilty to BSA violations due to the company’s insufficient AML protocols. His sentence comprised 30 months of probation and a $10 million penalty. He was pardoned on March 28, 2025.
- Samuel Reed (BitMEX): Serving as BitMEX’s Chief Technology Officer, Reed admitted in 2022 to BSA violations related to the platform’s AML deficiencies. He was sentenced to 18 months of home detention, two years of probation, and a $10 million fine. President Trump issued his pardon on March 28, 2025.
- Gregory Dwyer (BitMEX): As Head of Business Development for BitMEX, Dwyer pleaded guilty to BSA violations and was sentenced to one year of home detention and a $1.5 million fine. He received clemency on March 28, 2025.
- Ross Ulbricht (Founder, Silk Road): Founder of the Silk Road online marketplace, Ulbricht was convicted in 2015 on multiple (and all) charges, including conspiracy to commit money laundering, computer hacking, and narcotics trafficking, resulting in a life sentence without parole. President Trump granted him a full pardon on January 21, 2025.
- Trevor Milton: Founder of Nikola Corporation, Milton was convicted of securities fraud for misleading investors about the company’s technological capabilities. He was sentenced to four years in prison and ordered to repay investors. President Trump pardoned him on March 28, 2025.
In August, The New York Times reported that Changpeng “CZ” Zhao, the former CEO of Binance, was also seeking a presidential pardon.
2025 Cryptocurrency Policy Shifts
There have also been notable changes in the U.S. government’s approach to cryptocurrency regulation:
Tornado Cash Sanctions Lifted
On March 21, 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) officially removed sanctions against Tornado Cash, a decentralized tool used to mix cryptocurrency. The decision came after a federal appeals court ruled that the Treasury went beyond its legal powers when it originally imposed the sanctions.
National Cryptocurrency Enforcement Team (NCET) Disbanded
The U.S. Department of Justice announced the dissolution of the NCET on April 8, 2025. This decision reflects a strategic shift to focus on prosecuting individuals who use digital assets for serious crimes, such as terrorism and human trafficking, rather than pursuing regulatory violations in the cryptocurrency space.
Securities and Exchange Commission (SEC) Enforcement Changes
The SEC has recently dismissed or paused several high-profile cases involving cryptocurrency firms, indicating a move towards regulatory clarity and collaboration with the digital asset industry. Notable changes to ongoing activities include:
SEC Ends Coinbase Action
On February 27, 2025, the SEC and Coinbase agreed to end the ongoing lawsuit, officially dismissing the case.
Ripple Labs
On March 19, 2025, Ripple Labs shared that the SEC dropped its appeal in the XRP case, bringing the legal battle to a close.
Kraken
In March 2025, the SEC decided to withdraw its lawsuit against Kraken, which had accused the exchange of operating without proper registration.
Gemini
The SEC and Gemini asked for a 60-day pause in their legal case to try and reach a settlement over the Gemini Earn program.
Uniswap Labs
The SEC closed its investigation into Uniswap Labs without pursuing enforcement action, as announced in February 2025.
Robinhood Crypto
Robinhood announced in February 2025 that the SEC’s Enforcement Division had closed its investigation into the company’s crypto arm without pursuing enforcement action.
Consensys
Consensys reached an agreement in principle with the SEC, leading to the withdrawal of the enforcement case related to its MetaMask wallet.
So What?
The government is easing up on enforcing rules, letting some well-known people in the crypto world off the hook, and pulling back from strict oversight. This marks a big change in how the U.S. handles cryptocurrency and virtual assets.
This shift raises big questions:
- In a world where money moves without a central bank, how will crimes be caught and punished? Said differently, who will enforce the rule of law?
- What protections will keep people, markets, and the country safe?
- Is the U.S. giving up the safeguards it created after the Great Depression to stop another financial disaster?
We’re watching these answers play out right now—and they could shape the future of money, security, and personal freedoms.
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