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  • Although Sam Bankman-Fried won't be confronted with a campaign finance charge during his trial in October, it doesn't imply he's completely in the clear.
  • The FTX founder is set to confront seven charges in October, followed by an additional five charges in a second trial next year.

 

Prior to Sam Bankman-Fried's criminal trial scheduled for October, prosecutors have opted to drop a campaign finance charge.

While the U.S. Department of Justice isn't absolving the FTX founder of alleged criminal conduct, they are not pursuing campaign finance charges at this time. However, it remains a possibility that these charges could be brought to trial in the future.

Bankman-Fried is facing a series of trials, with the first one scheduled for October 2nd, on seven distinct charges. These charges encompass conspiracy to commit wire fraud and wire fraud, as well as conspiracy to commit securities fraud and money laundering. Following this initial trial, he will face another legal proceeding in March of the following year, involving an additional five charges. These charges include conspiracy to commit bank fraud, conspiracy to operate an unlicensed money transmitter, and conspiracy to bribe foreign government officials.

In a letter released on Wednesday night, the Department of Justice (DOJ) announced its decision to drop the charges against him, citing extradition treaty commitments with the Bahamas. This has led to widespread speculation that he might be receiving protection from influential political supporters.

 

 
 
The truth is far less exciting.
 
Background information: In December, the Bahamas police apprehended Bankman-Fried following an extradition request made by the U.S. authorities. As per the extradition treaty, Bankman-Fried had the option to contest the extradition, which he initially pursued but ultimately consented to the extradition at a later stage.
 
When he was extradited, Bankman-Fried initially confronted only the eight charges that prosecutors had filed in December 2022. Subsequently, the Department of Justice (DOJ) imposed an additional five charges through two superseding indictments in the following months.

Nevertheless, Bankman-Fried's legal team presented an argument in court, asserting that the inclusion of those supplementary charges was mandatory for the Bahamas as per the stipulations outlined in their extradition treaty. The Department of Justice (DOJ) stated its readiness to await the approval from the Bahamas authorities, and although the Bahamian government appeared open to granting that consent, a Supreme Court judge ruled that Bankman-Fried should be afforded the opportunity to challenge it prior to any further action.

Consequently, the DOJ expressed its readiness to separate or independently address the five additional charges, which ultimately resulted in the scheduling of the trial in March.

In a previous month's hearing, the defense team contended that the warrant of surrender did not encompass the campaign finance charge. In response, the prosecution asserted that the charge had indeed been incorporated in the extradition request.

In a letter issued on Wednesday, the Department of Justice (DOJ) revealed that the Bahamian government had communicated to the U.S. authorities about the omission of the campaign finance charge from their arrest warrant and extradition documentation. This communication implied that the approval of the Bahamas government was required for the inclusion of this specific charge.

It remains unclear whether the DOJ will endeavor to include this charge in the upcoming March trial. Despite being asked for comment, a representative from the DOJ has not provided a response. It's worth noting that an interim gag order, issued by District Judge Lewis Kaplan, who presides over the case, may restrict the DOJ from making any statements beyond the court docket.

Meanwhile, the prosecutors handling the case are racing against time to draft and submit a formal motion for the remand of Bankman-Fried into custody. This urgency arises due to the allegations made by Assistant U.S. Attorney Danielle Sassoon, who asserted that Bankman-Fried deliberately attempted to manipulate witness testimony by sharing the confidential diary of former Alameda Research CEO, Caroline Ellison, with The New York Times. Sassoon emphasized in court that the Department of Justice (DOJ) had reached the conclusion that the conditions of Bankman-Fried's release had bestowed too much trust upon him, and he had shamefully abused these privileges.

The deadline for the DOJ filing is Friday night, and Bankman-Fried's defense team has until Tuesday to submit their response.