Presidential Pardons and Recent Cryptocurrency Enforcement Developments
A presidential pardon is an authority granted to the President of the United States under the U.S. Constitution that allows for forgiveness of federal crimes. Once issued, a pardon is final and cannot be overturned by Congress or the courts.
Historical Context of Presidential Pardons
Presidential pardons have long been a feature of the U.S. legal system and have periodically generated public debate. In 1974, President Gerald Ford issued a pardon to former President Richard Nixon following the Watergate scandal. The decision prompted differing views, with some regarding it as a step toward national reconciliation and others raising concerns about accountability.
In 2001, President Bill Clinton pardoned financier Marc Rich, who had fled the United States while facing charges including tax evasion and illegal trading. That pardon similarly attracted scrutiny regarding the use of executive clemency and the standards applied in the pardon process.
These examples illustrate that controversial pardons are not unique to any single administration or policy area.
Recent Presidential Pardons Involving Cryptocurrency-Related Convictions
In 2025, President Donald Trump granted pardons to several individuals associated with cryptocurrency-related prosecutions involving violations of U.S. financial laws:
Arthur Hayes (BitMEX): The co-founder and former CEO of BitMEX pleaded guilty in 2022 to violations of the Bank Secrecy Act (BSA) related to failures in implementing adequate anti–money laundering controls. He was sentenced to home confinement, probation, and a monetary penalty before receiving a full pardon on March 28, 2025.
Benjamin Delo (BitMEX): A co-founder of BitMEX, Delo also pleaded guilty to BSA violations arising from deficiencies in the exchange’s compliance program. He received probation and a financial penalty and was pardoned on March 28, 2025.
Samuel Reed (BitMEX): BitMEX’s former Chief Technology Officer pleaded guilty to BSA violations and was sentenced to home detention, probation, and a fine. He received a pardon on March 28, 2025.
Gregory Dwyer (BitMEX): The former Head of Business Development at BitMEX pleaded guilty to BSA violations and was sentenced to home detention and a monetary penalty. He received clemency on March 28, 2025.
Ross Ulbricht (Silk Road): Ulbricht, the founder of the Silk Road online marketplace, was convicted in 2015 on multiple federal charges, including money laundering conspiracy and narcotics trafficking, and sentenced to life imprisonment. He received a full pardon on January 21, 2025.
Trevor Milton (Nikola Corporation): Milton was convicted of securities fraud for misleading investors regarding Nikola’s technology and business operations. He was sentenced to prison and ordered to pay restitution before being pardoned on March 28, 2025.
Changpeng “CZ” Zhao (Binance): Zhao pleaded guilty to violations of U.S. anti–money laundering laws, and Binance agreed to a $4.3 billion penalty for Bank Secrecy Act violations. Zhao received a presidential pardon on October 23, 2025.
- Ilya Lichtenstein: He was sentenced in 2024 to five years in federal prison for laundering proceeds from the 2016 Bitfinex cryptocurrency hack and was released early after serving roughly 14 months. He publicly thanked President Donald Trump for the First Step Act, which enabled his reduced sentence.
Broader Cryptocurrency Policy Developments in 2025
Alongside the use of executive clemency, several policy and enforcement developments have reshaped the regulatory landscape for digital assets.
OFAC Sanctions on Tornado Cash Lifted
On March 21, 2025, the U.S. Treasury’s Office of Foreign Assets Control removed sanctions against Tornado Cash following a federal appellate court ruling that found the original designation exceeded statutory authority.
Dissolution of the National Cryptocurrency Enforcement Team
On April 8, 2025, the U.S. Department of Justice announced the dissolution of its National Cryptocurrency Enforcement Team. The Department indicated that enforcement efforts would instead prioritize cases involving serious criminal conduct, such as terrorism financing and human trafficking, rather than regulatory violations.
Changes in SEC Enforcement Activity (2025)
In 2025, the Securities and Exchange Commission dismissed, paused, or otherwise resolved several high-profile matters involving cryptocurrency firms, as reflected in public filings and company disclosures:
Coinbase: On February 27, 2025, the SEC and Coinbase agreed to dismiss the civil enforcement action against the exchange, formally ending the litigation.
Ripple Labs: In March 2025, the SEC and Ripple Labs filed a joint stipulation dismissing the appeal and cross-appeal in the long-running XRP enforcement matter, resolving remaining appellate proceedings.
Kraken: The SEC withdrew its lawsuit against Kraken in March 2025, bringing the enforcement action to a close.
Gemini: The SEC and Gemini jointly requested a 60-day pause in litigation related to the Gemini Earn program to explore potential resolution. The request reflected a procedural stay rather than a dismissal of the case.
Robinhood Crypto: Robinhood disclosed that the SEC closed its investigation into the company’s crypto business without pursuing enforcement action.
Uniswap Labs: Public reporting indicated that the SEC closed or resolved its inquiries involving Uniswap Labs without initiating enforcement proceedings.
Consensys: Reports similarly indicated that matters involving Consensys, including issues related to its MetaMask wallet, were resolved without continued enforcement action.
Taken together, these developments reflect a period in which several cryptocurrency-related enforcement matters were concluded through dismissal, resolution, or procedural pause rather than continued litigation.
Implications for Enforcement and Legal Frameworks
The use of executive clemency, shifts in enforcement priorities, and the resolution of pending cases signal an evolving approach to oversight in digital asset markets.
These changes raise broader considerations regarding how accountability, consumer protection, and market integrity will be maintained as financial activity increasingly occurs through decentralized and cross-border systems.
Questions surrounding enforcement authority, regulatory jurisdiction, and institutional capacity remain central to ongoing discussions about the future governance of digital assets.
Additional Context
For further background on enforcement challenges affecting investors, see our overview of crypto scam centers.