Just recently, the U.S. Department of Justice made it known to a federal judge their intentions of discarding a campaign finance charge against the former FTX CEO – Sam Bankman-Fried. This decision was reached after extensive deliberation with The Bahamas, the sovereignty that initially arrested Bankman-Fried. This comes to attention following the revelation that the disclosed charge was not included in last year’s extradition document.
Towards the closing months of 2022, Bankman-Fried was indicted with eight other charges. As the case progressed, five more charges were appended. However, the defense counsel of Bankman-Fried insisted that the authorities in The Bahamas must consent to the newly added charges under the extradition treaty established with the U.S.
This has led to a decision by Judge Lewis Kaplan, who presides over the District Court for the Southern District of New York, to detach those charges while fixing a trial date in March. Exactly what these are, and the extent of Bankman-Fried’s involvement, has yet to be fully disclosed.
Interestingly, The Bahamas made no mention of the eighth charge, which pertains to a campaign finance violation, in their extradition treaty. As a result, the U.S. Department of Justice reached an agreement not to proceed with this particular charge.
Simultaneously, another potentially damaging event occurred. There was an inquiry into alleged attempts by Bankman-Fried to discredit a former Alameda Research executive, Caroline Ellison, using private documents shared with the New York Times. During this intense investigation, the assistant U.S. attorney, Danielle Sassoon, suggested that Bankman-Fried be held in custody.
At present, the situation remains in flux. Judge Kaplan opted not to take a stand on Sassoon’s motion during the Wednesday’s hearing. Instead, he established a schedule for both the prosecution and defense to file written submissions on the issue. Meanwhile, an interim gag order has been imposed on Bankman-Fried as a preventative measure.
While certain outcomes may seem clear now, the story is far from being wrapped up. Bankman-Fried’s trial is due to start on Oct. 2. What remains uncertain is whether the campaign finance charge will be reconsidered or completely dropped in the ensuing second trial scheduled for March.
Source: Coindesk
