Trump Pardons Cryptocurrency Exchange BitMEX: A First for Corporate Accountability?
In a move that could mark a significant first for presidential power in the United States, former President Donald Trump recently pardoned a criminal corporation. This action, which received minimal attention amidst a series of pardons for white-collar criminals, raises important questions about corporate accountability within the legal framework.
The Context of the Pardons
On March 28, 2023, Trump issued pardons for HDR Global Trading, the operator of the cryptocurrency exchange BitMEX, along with its co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed, as well as former business development chief Gregory Dwyer. All individuals had previously pleaded guilty to violating the Bank Secrecy Act by failing to implement adequate anti-money laundering measures.
Earlier this year, the U.S. Department of Justice imposed a $100 million fine on BitMEX, while the executives received criminal probation and were subjected to civil financial penalties.
A Lack of Precedent
Legal experts have noted the unprecedented nature of Trump’s pardon for a corporation. Bernadette Meyler, a professor at Stanford Law School, highlighted the uniqueness of this action in her commentary. She referred to the contentious Citizens United v. Federal Election Commission ruling as a pivotal moment in granting corporate personhood, yet acknowledged that this type of presidential pardon had not been seen previously.
Implications for Corporate Accountability
Legal scholar Kimberly Wehle from the University of Baltimore expressed concern regarding Trump’s approach to corporate malefaction. She pointed out that these pardons may signal to corporations that they can evade the consequences of financial crimes. Wehle stated that such actions encourage ongoing criminal practices without fear of repercussion and undermine the public’s trust, particularly among those who voted last November.
“The biggest losers in this deal are, once again, the American people,” stated Wehle.
A Pattern of Corporate Impunity
Brandon Garrett, a law professor at Duke University, suggested that these pardons form part of a broader trend of corporate impunity under Trump’s administration. He indicated that there has been a systematic tendency to pardon corporate offenders without a thorough consideration of the implications of such decisions.
The consumer advocacy organization Public Citizen recently reported that over 100 corporate investigations and enforcement actions had been either halted or withdrawn in the early months of the Trump presidency. Companies that benefited include those with ties to Trump’s supporters, such as major banks and technology firms.
Concerns for the Future
Rick Claypool, the research director for Public Citizen, articulated worry about the ramifications of Trump’s leniency toward corporate crimes, arguing that such a stance could instigate a surge in corporate criminal behavior that adversely affects consumers and communities. Alongside him, Robert Weissman, co-president of Public Citizen, projected that the current policies may lead to an increase in financial misdeeds, environmental hazards, and public health risks.
Conclusion
Trump’s corporate pardons, especially the case involving BitMEX, highlight a significant shift in how corporate wrongdoing is treated under presidential authority. As the landscape of corporate accountability continues to evolve, the long-term impacts of such pardons remain to be seen.
