Summary:
In what may be a first in American history, President Trump just expanded the presidential pardon power to include corporations.
Corporations are artificial legal fictions designed to maximize shareholder wealth. Nonetheless, they can theoretically commit crimes and be indicted for them. According to a 1999 memorandum from the Justice Department, the “important public benefits” of prosecuting corporations include “deterrence on a massive scale,” particularly for “crimes that carry with them a substantial risk of public harm,” such as “financial frauds.”
Such public benefits now fall prey to the whims of the president with his pardon of a cryptocurrency company that smacks of political corruption.
On Friday, Trump issued full and unconditional pardons to four individuals and a related cryptocurrency exchange, BitMEX.
BitMEX solicits and takes orders for trades in derivatives tied to the value of cryptocurrencies, including Bitcoin. Last summer, BitMEX entered a guilty plea in a Manhattan federal court for violating the Bank Secrecy Act for having operated without a legitimate anti-money laundering program. Prior to August 2020, customers could register to trade with BitMEX anonymously, providing only verified email addresses. The latest in politics and policy. Direct to your inbox. Sign up for the Opinion newsletter
On Jan. 15, 2025, BitMEX was criminally fined $100 million in connection with its guilty plea, which was on top of $130 million in civil penalties previously imposed by the Commodities Futures Trading Commission. At sentencing, the judge noted that BitMEX, which is incorporated in the Seychelles, had claimed not to operate in the U.S. for several years even though U.S. customers comprised a large share of its business.
The article argues against it, but technically pardoning a corporation makes sense. The corporation as an entity exists to allow people to take more risk and not have the consequences ruin them personally. This is literally what they teach you in business law.
So sure, it’s stupid and BitMEX is obviously guilty, but from a legal perspective, pardoning a corporation makes sense
Yeah, I’m sure this explanation will renew people’s faith in the legal system.
“No it’s ok guys, corporations are supposed to shield people from consequences. So it’s ok.”
Literally yes, that’s why they were made.
Welcome to capitalism. If you don’t like it, don’t try to fix it, the system is working as intended.
Now you are getting it.
It’s not ok, but neither was the original limited liability.
Bullshit.