FTX co-founder could feel a slight relief as prosecutors plan to abandon one accusation.
The legal proceedings concerning Sam Bankman-Fried (SBF), the co-founder of FTX, are set to ease slightly as US prosecutors intend to drop an allegation against him related to illegal campaign donations.
This development comes in light of the extradition disagreements between the United States and The Bahamas.
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In a letter addressed to District Court Judge Lewis Kaplan on July 26th, US Attorney Damian Williams disclosed that The Bahamas had not approved the extradition of Bankman-Fried based on the specific charge of illicit campaign contributions.
As a result, the US government doesn't plan to present this charge at trial. Williams stated in the letter:
The Bahamas did not intend to extradite the defendant on the campaign contributions count. In keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count.
This particular allegation was already contested by Sam Bankman-Fried, arguing that it was initiated after his extradition agreement with The Bahamas, thus breaching a treaty between the two nations.
In total, Bankman-Fried has been hit with 13 different accusations. The majority of charges, including the one the prosecutors now aim to withdraw, were announced in December 2022. Subsequent indictments in February and March 2023 brought an additional five charges.
In response to the accumulation of charges, the government has separated the trials, scheduled for October 2023 and March 2024.
Once this particular campaign contribution charge is officially dismissed, Bankman-Fried will still be facing a dozen accusations, encompassing fraud, money laundering, and Chinese official bribery allegations. The former mastermind behind FTX has pled not guilty to all charges.
The latest development in the legal proceedings involving Sam Bankman-Fried signifies a minor victory for the FTX co-founder. While he will still face a host of serious charges, the dismissal of the campaign contribution allegation should provide some relief.
