Sam Bankman-Fried (SBF), the disgraced founder of collapsed FTX Crypto exchange and the second biggest Democrat donor in the 2022 midterms, had several charges against him dropped by the feds.
Crypto giant FTX went bankrupt last year, losing billions and wrecking the lives of thousands of crypto investors.
In January, Sam Bankman-Fried pleaded not guilty to all eight counts related to the sudden collapse of his crypto Ponzi scheme.
On Tuesday, SBF pleaded not guilty in New York to eight charges related to the collapse of his former crypto exchange FTX and hedge fund Alameda Research.
SBF was indicted on eight counts, including the following charges:
- Conspiracy to commit wire fraud and securities fraud
- Individual charges of securities fraud and wire fraud
- Money laundering
- Conspiracy to avoid campaign finance regulations
The FTX attorney testified that the FTX co-founder used a secret backdoor to launder money to Alameda Research, a sister company.
SBF’s ex-girlfriend, Caroline Ellis, admitted she and Sam Bankman-Fried conspired to mislead FTX investors and customers.
However, federal prosecutors announced on Thursday they would drop several charges against SBF.
The offer to sever five of the 13 charges followed a ruling earlier this week in the Bahamas that allows Bankman-Fried to challenge the additional charges.
A prosecutor said during a hearing Thursday it was uncertain when the Bahamas would decide whether to consent to the new charges, which included bank fraud and an allegation Bankman-Fried bribed the Chinese.
“Severing those counts seems to be appropriate given the developments in the Bahamas this week,” the prosecutor, Nathan Rehn, said.
As Tekedia noted:
“The prosecutors did not provide any explanation for the sudden withdrawal of the charges, which were filed in September 2022.
The charges had accused Bankman-Fried and his associates of operating an unregistered securities exchange, facilitating illegal transactions, and failing to comply with KYC and AML requirements.”
Conservative commentator Ian Miles Cheong had this prediction for SBF:
“SBF is going to walk. Just watch.”