US Prosecutors Drop Additional Fraud Charges Against Sam Bankman-Fried
In Brief
US prosecutors will drop remaining fraud charges against SBF, including foreign bribery, bank fraud and unlawful political donations.
United States prosecutors, led by Damian Williams — US Attorney for the Southern District of New York, decided not to pursue remaining charges against Sam Bankman-Fried (SBF), including foreign bribery and bank fraud, among others. Additionally, a charge related to unlawful political donations, which was separated from the original indictment due to an extradition dispute with the Bahamas, will also not be pursued.
In a letter outlining the decision, prosecutors emphasized that evidence related to several charges had been previously introduced during Bankman-Fried’s initial trial. In that trial, he was convicted on all seven counts of fraud and conspiracy connected to his management of FTX and its affiliated trading company, Alameda Research.
The prosecutors clarified that this evidence could be taken into account during the sentencing phase, despite the absence of an opportunity for the jury to deliberate on it.
“Proceeding with sentencing in March 2024 without the delay that would be caused by a second trial would advance the public’s interest in a timely and just resolution of the case” the prosecutors stated.
The scheduled date for Bankman-Fried’s sentencing is set for March 28, 2024.
Prosecutor’s Decision Leaves Controversies in the Dark
Due to the prosecutor’s decision, certain information may never come to light, such as the specific involvement of Thai sex workers in Alameda’s strategy to unfreeze its Chinese accounts—an incident that ultimately led to Alameda paying a bribe to Chinese government officials, as testified by the star witness and former Alameda chief executive officer, Caroline Ellison.
However, the crypto community appears predominantly concerned with a specific dropped charge: the accusation of unlawful political donations. This is particularly noteworthy considering Bankman-Fried’s extensively reported contributions to numerous Democratic and Republican politicians. Prosecutors asserted that Bankman-Fried utilized customer funds for $100 million in political donations. This decision highlights the growing “normalization” of corruption.
Bankman-Fried Convicted on Seven Fraud Charges
On November 3 in 2023, Bankman-Fried was convicted of all seven fraud charges by a jury in his criminal trial following four hours of deliberation. The charges include two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy, and one count of money laundering conspiracy.
Bankman-Fried was accused of misappropriating $8 billion from users of his now-closed cryptocurrency platform, FTX. Prosecutors contended that Bankman-Fried redirected funds from FTX to his cryptocurrency-focused hedge fund, Alameda Research, despite publicly assuring the safety of customer funds.
The redirected funds were purportedly utilized for executive loans, speculative ventures, and substantial political contributions intended to influence favorable cryptocurrency legislation.
Last month, Bankman-Fried’s plea for a postponement of four to six weeks for his sentencing hearing was denied. It was specified that Bankman-Fried had already been granted one extension for submitting sentencing documents.
Bankman-Fried’s conviction highlights a crucial moment in his legal battle, marking another chapter in the unfolding narrative of FTX’s downfall.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
