Key Takeaways:
- The US prosecutors have decided to drop certain charges against Sam Bankman-Fried.
- The decision comes amid their failure to secure an agreement from The Bahamas to proceed with the accusations.
- Meanwhile, SBF could still be arrested before his trial begins.
YEREVAN (CoinChapter.com) — Former FTX Chief Sam Bankman-Fried (SBF) will not face any charges related to campaign financing. The US Department of Justice (DOJ) has announced that they have dropped those charges.
However, in the latest hearing, prosecutors demanded that the disgraced crypto billionaire be arrested ahead of his trial.
The DOJ’s decision comes after consultations with The Bahamas regarding the campaign finance charges included in Sam Bankman-Fried’s extradition document last year.
“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 in a letter to the court.
not intend to proceed to trial on the campaign contributions count against Sam Bankman-Fried.
According to a report by Open Secrets, the FTX founder is the sixth-largest political donor. His donations to political campaigns amount to nearly $40 million for the 2021-2022 cycle.
Initially, the US Department of Justice had brought eight separate charges against Bankman-Fried in late 2022. Subsequently, five additional charges were added by the prosecutors.
However, Bankman-Fried’s defense team argued that for these supplementary charges to be valid, The Bahamas, where the former FTX CEO was initially arrested, must have given their consent to the extradition treaty between the US and The Bahamas.
Last month, the DOJ announced they would charge SBF only on 8 original charges following the FTX collapse, pending approval from The island nation. The latest statement to the court puts an end to speculation and uncertainty surrounding the allegations.
Judge says considering jail Sam Bankman-Fried
The judge presiding over the case is currently deliberating on whether to revoke Sam Bankman-Fried’s bail following allegations made by prosecutors during the recent hearing.
According to the prosecutors, the FTX founder has violated the bail provisions. He has utilized the news media as a means to harass a crucial witness involved in his case. According to them, this gives enough cause for his detention until the trial.
The witness in the case is none other than his former alleged romantic partner Caroline Ellison. She was the former CEO of Alameda Research, who entered into a plea agreement with the prosecutors.
Judge Lewis A. Kaplan refrained from an immediate decision regarding the potential incarceration of SBF. Instead, he granted defense lawyers and prosecutors a few days to present written arguments and additional information to support their respective positions.
However, he warned Bankman-Fried not to take his bail for granted.
“I am certainly very mindful of his First Amendment rights, and I am very mindful of the government’s interest here, which I take very seriously… I say to the defendant, Mr. Bankman-Fried: You better take it seriously, too,”
the judge said.
Meanwhile, Bankman-Fried’s attorney, Mark Cohen, rubbished the prosecutor’s demand for an arrest. Instead, he stated that his client’s intention was merely to protect his reputation when communicating with the media.
The trial against the former crypto mogul is scheduled on October 2. It remains to be seen if SBF will head to the lockup before this date after the sides submit their written arguments.
