DOJ Drops Yet Another Charge Against Sam Bankman-Fried
Federal prosecutors have made the decision to drop the campaign finance charge against cryptocurrency mogul Sam Bankman-Fried. The criminal case against him, which also included fraud charges, was initiated last December following the sudden collapse of his cryptocurrency exchange, FTX. Bankman-Fried was swiftly extradited to the United States from the Bahamas, where FTX was headquartered.
The prosecutors cited a court filing on Wednesday night, stating that they were informed by Bahamian officials that the government of the Bahamas did not intend to extradite Bankman-Fried on the campaign finance charge. As a result, the U.S. government, bound by treaty obligations, will not proceed to trial on this particular count.
“Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count,” US Attorney Damian Williams wrote to Judge Lewis Kaplan.
This development is a significant victory for Bankman-Fried’s legal team, which had previously argued that the United States mishandled the extradition process. It follows a decision made by the prosecution in June to move forward with the trial, scheduled for October, without pursuing five other charges that had been added to Bankman-Fried’s indictment after his extradition.
According to authorities, Bankman-Fried and individuals associated with FTX allegedly used customer deposits to make $90 million in campaign contributions to around 300 political candidates and political action committees. Prosecutors and bankruptcy lawyers for FTX have been actively seeking the return of these donations from the recipients.
While the campaign finance charge has been dropped, Bankman-Fried will still face seven other charges at his upcoming trial, including allegations of defrauding customers and lenders of FTX. Prosecutors contend that he orchestrated an extensive fraud scheme, diverting billions of dollars from customer deposits to finance campaign contributions, charitable donations, and real estate purchases.
The prosecution intends to pursue a second trial on the five charges that were withdrawn in June, which include an accusation of Bankman-Fried bribing a foreign government. This trial was postponed due to ongoing litigation over the extradition process in the Bahamas.
Despite the removal of the campaign finance charge, legal experts assert that the prosecution still possesses overwhelming evidence against Bankman-Fried. However, the absence of this charge could potentially simplify the fraud case for presentation to a jury.
If convicted on the securities fraud and wire fraud charges, Bankman-Fried could face a lengthy prison sentence. The impact of the prosecutors’ decision on others associated with him, such as Nishad Singh, a former FTX executive cooperating with the investigation, remains uncertain.
Singh had previously pleaded guilty to various charges and collaborated with prosecutors, while another former FTX executive, Ryan Salame, is currently under investigation for making campaign finance contributions to predominantly Republican candidates.
Information for this briefing was found via Business Insider, Forbes, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
