US Prosecutors to Drop Campaign Finance Charges Against Bankman-Fried
- US prosecutors accused Bankman-Fried of witness tampering.
- Prosecutors urged Judge Kaplan to revoke the 31-year-old’s bail due to fears that he could jeopardize their case before the October trial.
FTX co-founder Sam Bankman-Fried scored a mini-victory on Wednesday night after prosecutors dropped a campaign finance charge against the 31-year-old. Bankman-Fried was previously charged for allegedly conspiring to make illegal campaign contributions.
The charge claimed that Bankman-Fried and his associates used tens of millions of dollars in FTX money to make over 300 unlawful political donations in an effort to gain the favor of politicians who could implement policies that would benefit his business.
However, U.S. Attorney Damian Williams wrote in a letter dated July 26 to District Court Judge Lewis Kaplan that prosecutors had been informed by The Bahamas that it did not consent to extradite the FTX founder on that count. So, prosecutors are required to drop the charge. Furthermore, US extradition treaties with the Bahamas require the island to consent to charges against Bankman-Fried before it can move to trial.
William’s letter read that,
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.
The campaign finance charge was one that Bankman-Fried’s lawyers strongly refuted, claiming that it had been brought after his extradition agreement with the Bahamas and that it violated that agreement.
The new decision to drop the campaign finance charges will help Bankman-Fried’s camp focus on what the prosecution regards as his primary crime: stealing billions of dollars from customers at his now-bankrupt FTX exchange.
Bankman-Fried still has 12 charges to contend with. However, five of those charges were added after his extradition, which brings them into question. Some of the charges against the former crypto billionaire include fraud, money laundering, fraud conspiracy, and attempting to bribe an official. Surprisingly, Bankman-Fried has pleaded not guilty to all charges.
Interestingly, Bankman-Fried’s attorneys are working hard to keep him out of jail ahead of his fraud trial on October 2. Manhattan prosecutors had accused the 31-year-old of witness tampering. They claimed the former FTX CEO had shared Caroline Ellison’s private letters with a New York Times reporter.
In addition, federal prosecutors urged the judge to revoke Bankman-Fried’s $250 million bail following his alleged interference. Prosecutors expressed worries that Bankman-Fried could jeopardize their case before the trial date, adding that “no set of conditions short of detention” would ease their concerns.
Responding to the prosecutor’s demands, Mark Cohen, the defense attorney, said it would be nearly impossible to prepare a strong defense if his client was jailed. Cohen also added that Bankman-Fried’s interaction with a reporter was part of his First Amendment right to respond to media inquiries.
Judge Kaplan gave Bankman-Fried a temporary gag order, forbidding him from speaking with the media about the case in any way. The Judge also noted that he would make a decision regarding the prosecutors’ demands after reviewing the arguments from both parties.
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