Trump Pardons BitMEX Founders – Will Terra’s Do Kwon Be Next?

Donald Trump is making headlines in the crypto world again. This time, he’s granting pardons, and the latest to benefit are BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. The trio had pleaded guilty to violating banking laws, but with Trump’s decision, their records are now wiped clean.

This unexpected move has sent shockwaves through the crypto community. Some see it as a game-changer, while others question what it means for future regulation. And with Trump already shaking up the system, one big question looms – could Terra’s Do Kwon be next?

A Major Shift in Crypto Regulation

Trump’s pardon of the BitMEX founders signals a big shift in how the U.S. government handles crypto-related offenses. Hayes, Delo, and Reed had already settled their legal troubles by paying $30 million in fines and serving prison time. Now, with this pardon, they are free from all legal restrictions.

This move follows Trump’s earlier pardon of Silk Road founder Ross Ulbricht, showing a pattern of leniency toward figures in the crypto space. Some see this as a sign that crypto-related crimes may no longer be as aggressively prosecuted under his administration.

Could Do Kwon Be Next in Line?

With the legal battle between Terra and the SEC still ongoing, many in the crypto community are wondering if Trump’s latest decision could set a precedent in favor of Kwon. If a similar pardon were granted, it could reopen opportunities for Terra and influence how crypto companies handle future regulatory challenges.

The SEC’s Approach Appears to Be Changing

The U.S. Securities and Exchange Commission (SEC) also seems to be adjusting its stance. Recently, it dropped charges against influencer Hailey Welch, who was linked to the HAWK token. This suggests the agency is shifting away from its previous hardline approach and moving toward a more balanced regulatory strategy.

Rather than aggressively penalizing individuals without strong evidence, the SEC’s latest decisions indicate a preference for clearer guidelines and fairer enforcement.

Critics Push Back Against the Pardons

Not everyone in the financial world supports Trump’s decision. Veteran investor and long-time crypto critic Peter Schiff criticized the pardons, stating that while he opposes most anti-money laundering (AML) laws, he believes the BitMEX founders were guilty.

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Schiff also shared that the IRS had spent years trying to indict him for AML violations but was unsuccessful because his bank records were clean. His comments highlight the ongoing debate over how crypto-related financial crimes should be handled.

New SEC Chairman Could Shape Crypto’s Future

Trump’s pick for the next SEC chairman, Paul Atkins, could further impact crypto regulation. Unlike former SEC chairman Gary Gensler, who focused on strict enforcement, Atkins has promised a more structured and transparent regulatory framework.

Many believe that if Atkins takes charge, institutional investors will feel more confident about entering the crypto market, potentially boosting mainstream adoption. However, some concerns remain over his personal crypto investments, which are reportedly worth nearly $6 million. Critics argue that this could create conflicts of interest.

Trump’s recent actions suggest that his administration may introduce more crypto-friendly policies. Whether this will extend to figures like Do Kwon remains uncertain.

If this is just the beginning of Trump’s second term, the crypto world better buckle up – because things are about to get interesting.