News Americas, NEW YORK, NY, Sat. June 24, 2023: Federal prosecutors in New York have offered to drop several criminal charges against crypto executive Sam Bankman-Fried, at least temporarily, on the condition that they may be tried later if the judge agrees.
The decision to sever five of the 13 charges came after a recent ruling in the Bahamas that allowed Bankman-Fried to challenge the additional charges. During a hearing, prosecutor Nathan Rehn stated that the timing of the Bahamas’ decision regarding the new charges, which include bank fraud and bribery allegations, remained uncertain.
Bankman-Fried, who has pleaded not guilty, is scheduled for trial in October, and prosecutors stated that they would not pursue the new charges without the consent of the Bahamas government. Bankman-Fried was extradited from the Bahamas on eight criminal charges related to the collapse of FTX, the cryptocurrency exchange he founded. His defense argued that the US government violated the extradition treaty with the Bahamas by filing additional charges, including bank fraud and a bribery allegation.
Defense attorney Marc Cohen expressed the desire for dismissal of those counts. The judge, Lewis Kaplan, did not make an immediate ruling and stated that he needed more time to consider the matter.
The defense also requested the dismissal of an original charge related to campaign finance violations, claiming it violated the extradition treaty as well. Prosecutors argued that Bankman-Fried lacked standing to make the argument as it involved diplomatic policy.
Bankman-Fried is accused of misappropriating billions of dollars in customer and investor funds from FTX, characterized by prosecutors as one of the largest financial frauds ever. He has been on bail and confined to his parents’ home in Palo Alto, with restrictions on Internet usage.
