SBF Probably to Face One Less Charge

US prosecutors intend to drop an allegation related to illegal campaign donations by Sam Bankman-Fried (SBF), the co-founder of FTX. The decision comes as a result of extradition disagreements between the United States and The Bahamas.

Damian Williams, US Attorney, revealed in a letter to District Court Judge Lewis Kaplan on July 26th that the Bahamas had not approved Bankman-Fried's extradition based on the charge of illicit campaign contributions. Consequently, the US government has decided not to pursue this charge during the trial.

Bankman-Fried had already countered the charge of illegal campaign contributions by pointing out that it was filed after his extradition agreement with The Bahamas, potentially violating that country's treaty. 

Last February, the authorities indicted the ex-FTX boss on charges of making 300 illegal political donations in the United States. He allegedly aimed to "purchase influence over cryptocurrency regulation in Washington, D.C.

FTX, under Bankman-Fried's leadership, was one of the largest cryptocurrency exchanges in the world. However, it faced a major setback last November when Bankman-Fried and others were accused of criminal mismanagement of the business. 

In total, Sam Bankman-Fried was charged with a staggering 13 different accusations. 

The government has scheduled separate trials for Bankman-Fried for October 2023 and March 2024 in response to the accumulation of charges. Even if the campaign donation charge is dropped, the former mastermind behind FTX still faces a dozen other accusations, including fraud, money laundering, and allegations of bribery.

Bankman-Fried has consistently maintained a not-guilty plea to all the charges brought against him throughout the legal process. Following the withdrawal of the campaign contribution allegations, the focus of the trial will shift, but the remaining charges will make the trial complex and closely watched