XRP-Supporting Lawyer Slams Pardon Controversy Over FTX Founder: “A Crime Doesn’t Change”

▲ FTX, Sam Bankman-Fried/ChatGPT-generated image

John Deaton, a lawyer well known as an advocate for XRP, has issued a strong warning against growing calls to pardon FTX founder Sam Bankman-Fried (SBF).

According to crypto-focused media outlet U.Today on February 23 (local time), Deaton made it clear that recently emerging data showing recovery of FTX assets cannot erase SBF’s criminal conduct. The FTX bankruptcy estate has indicated that, due to the rise in the value of its holdings, there is a possibility that customers could receive more than 100% of their principal back. However, Deaton emphasized that the crime was committed at the moment customer funds were misappropriated, and that a subsequent increase in asset values cannot justify fraudulent behavior.

“If a bank robber steals money and invests it in stocks, earning huge profits, repaying the money does not make him innocent,” Deaton said, directly rebutting the pardon argument put forth by SBF’s legal team. He stressed that the psychological distress and opportunity costs suffered by customers cannot simply be quantified in dollar terms. Considering that the price of Bitcoin (BTC) was significantly lower at the time of the bankruptcy than it is now, the actual losses incurred by customers were substantial.

During the bankruptcy process, the value of assets held by FTX, including Solana (SOL), surged, increasing the nominal size of its estate. However, legal experts generally agree that this recovery resulted from a broader market upswing and is unrelated to SBF’s management abilities or morality. Deaton warned that showing leniency to someone who undermined trust in the crypto market could send the wrong signal to potential future offenders.

Within the crypto industry, there are growing calls for strict law enforcement in this case. SBF is currently serving a 25-year prison sentence, and his legal team is seeking a reduced sentence or pardon based on the possibility of full customer compensation. The court finalized the sentence with a focus on the fundamental charge of misusing customer funds, regardless of asset recovery.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. The publisher is not responsible for any investment losses incurred based on this content.