The interview also touched on SBF's efforts to seek a pardon from Donald Trump. Meanwhile, a Brazilian political candidate faces legal trouble for failing to declare a Bitcoin purchase during the 2024 elections. In South Korea, authorities are expanding their crackdown on crypto-powered drug crimes by strengthening dark web investigations and adopting AI-powered monitoring tools to track illicit transactions.
Former FTX CEO Speaks From Prison
Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison in 2024 for misusing customer funds, and recently gave an interview from prison ahead of his 33rd birthday. He spoke with conservative commentator Tucker Carlson on March 5, and shared details about his life behind bars and his perspective on crypto regulation in the United States. The conversation also touched on his political contributions and potential efforts to seek a pardon from US President Donald Trump.
Bankman-Fried is a well-known donor to Democratic causes, and stated that his financial contributions to Republicans was roughly equivalent to those he made to Democrats. He claimed that he has strong relationships with Republican lawmakers in Washington, despite public perception at the time of FTX’s collapse suggesting otherwise. He also denied having reached out to any politicians for assistance when facing criminal charges in 2022, and said he avoided doing so to prevent appearing improper.
During the interview, Bankman-Fried held firm that he does not consider himself a criminal and defended former FTX Digital Markets co-CEO Ryan Salame, who was sentenced to seven and a half years in prison. He described Salame’s charges as “totally bogus” and suggested they may have been politically motivated because of his Republican affiliation.
His comments added to the speculation that he is trying hard to align himself with conservative figures in hopes of securing political support. Reports also suggest that his parents have been exploring the possibility of a presidential pardon for him from Trump after his re-election in November.
While awaiting the outcome of his appeal, Bankman-Fried is housed at the Metropolitan Detention Center in Brooklyn, which is the same facility where rapper Sean “Diddy” Combs is being held on charges related to sexual assault and sex trafficking. He described his daily life in prison as consisting largely of eating rice and beans, and also revealed that no former FTX employees visited him. Additionally, he claimed that those closest to him were pressured into cooperating with authorities under the threat of long prison sentences.
For now, it seems like the legal fallout from FTX’s collapse is nearing its conclusion, with several of Bankman-Fried’s former colleagues already sentenced. Former Alameda Research CEO Caroline Ellison received a two-year prison sentence in September of 2024, while FTX co-founder Gary Wang and former engineering director Nishad Singh were both sentenced to time served. Salame’s wife, Michelle Bond, still faces campaign finance charges and is expected to go to trial in 2025.
Brazilian Candidate Charged Over Undeclared Bitcoin
Other crypto criminals also find themselves in legal hot water. A political candidate in Brazil was charged by the Regional Electoral Court of Minas Gerais for failing to declare a Bitcoin purchase made in 2024. The candidate ran for a counsellor position in the municipality of Perdões during the Oct. 6 municipal elections, and was accused of concealing assets and failing to provide accurate financial disclosures related to campaign expenses. The court issued a subpoena, giving the politician until the end of the week to respond.
If found guilty, the candidate could face legal consequences like fines and financial restrictions. In more severe cases, failing to declare assets correctly can lead to accusations of abusing economic power or engaging in illegal fundraising activities. Convictions in cases like these can result in disqualification from running for public office in future elections, and for those already serving, removal from their positions.
Brazil’s electoral laws require all candidates to disclose their financial holdings, and regulations in recent years expanded to include Bitcoin and other cryptocurrencies. The country’s electoral court also prohibits candidates from receiving campaign donations in crypto.
Despite these regulations, the details surrounding how the court uncovered the Bitcoin transaction are still unclear, as the court documents did not specify the amount of BTC that was purchased or how the transaction was detected. Investigators did, however, uncover that the Bitcoin purchase took place in August of 2024, but the source of this information remains undisclosed.
Brazil’s electoral court has the authority to request account and wallet details from cryptocurrency exchanges and financial institutions that facilitate crypto transactions. In recent years, major financial institutions in Brazil, including Nubank, expanded their services to include Bitcoin and altcoins. Nubank previously committed to allocating 1% of its asset portfolio to BTC.
South Korea Expands Crypto Crime Crackdown
South Korea’s prosecution service is making it a priority to fight crypto crime by strengthening its efforts to fight against crypto-powered drug crimes. It plans to do this by expanding its dark web investigation unit.
With concerns over a rapid rise in online drug-related offenses, authorities are broadening the scope of their existing Dark Web Special Investigation Team, which was originally established in January. The initiative already includes narcotics experts from prosecution offices in Seoul, Incheon, Busan, and Gwangju, and will now be extended to include Suwon and Daegu, shifting its focus from just dark web activities to broader online drug distribution channels.
HQ of the South Korean prosecution service
To improve its monitoring capabilities, the prosecution service is adopting AI-powered tools to track illegal drug transactions and advertisements across the internet. Authorities identified around 10,000 dark web sites and 3,000 Telegram channels for further investigation, and also plans to intensify crackdowns on both Telegram-based networks and cryptocurrency transactions. A new task force will analyze crypto asset flows to identify illicit activity.
Investigators are also looking for greater cooperation with major international tech firms like Telegram, Google, Apple, Meta, X, and TikTok, as well as overseas-based cryptocurrency exchanges. In the past, South Korean law enforcement agencies openly expressed their frustration over their inability to shut down drug distribution networks operating on Telegram and X because of jurisdictional limitations. Despite increased convictions and police operations, drug dealers are still very active on these platforms, and use Korean-language slang to advertise their services.
Authorities believe that drug crimes involving cryptocurrencies will continue to rise, particularly among younger offenders. Last year, 60% of drug-related offenses in South Korea were committed by people under the age of 40, which is a demographic more familiar with online transactions and digital assets. In contrast, older offenders tend to rely on in-person cash transactions. Prosecutors also indicated plans to strengthen their response to the illegal sale and misuse of medical drugs.
