The Justice Department will not pursue the campaign finance charges against former FTX CEO Sam Bankman-Fried, to comply with Bahamian extradition laws, Forbes reports.
A DOJ filing late Wednesday to New York federal judge Lewis Kaplan said it had been informed that the Bahamas “did not intend to extradite the defendant on the campaign contribution count.”
Therefore, the DOJ told Kaplan, U.S. treaty obligations preclude prosecutors from including the campaign contributions count in trial proceedings.
SBF made the second-largest donation to President Joe Biden's presidential campaign, according to details revealed in The Wall Street Journal.
Bankman-Fried and other FTX executives spent at least $1 million on political contributions in the weeks before the company’s bankruptcy, including a large donation to Senate Republican leadership, according to Roll Call.
The DOJ made the filing hours after the judge put a gag order on Bankman-Fried after prosecutors said the former cryptocurrency billionaire leaked writings from his former business partner and girlfriend Caroline Ellison to The New York Times.
The dismissal of the campaign finance charges against Bankman-Fried follow DOJ’s temporarily dropping five additional charges against him in June—including bank fraud, running an unlicensed money-transmitting business and bribery—to give SBF’s attorneys a chance to fight them.
The terms of SBF’s extradition from the Bahamas in December included eight original counts but require the Bahamian government to approve any further charges against the accused fraudster.
In May, SBF’s lawyers asked the court to dismiss the most serious criminal charges against him, calling them “dramatic” and saying they turned “civil and regulatory issues into federal crimes.”
In addition, Bankman-Fried’s attorneys blamed the collapse of FTX, once valued at $32 billion, on the “crypto winter” of 2022.
Kaplan responded to the request late last month, calling them “either moot or without merit.”
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