Last year, Crypto giant FTX faced a severe financial setback, leading to its bankruptcy and a significant loss of billions of dollars.
During the 2022 midterms, Sam Bankman-Fried (SBF), the owner of FTX, emerged as one of the top contributors to the Democrat Party.
In early January, SBF entered a plea of not guilty for all eight charges connected to the downfall of his cryptocurrency Ponzi scheme. SBF stood before the New York federal court on Tuesday, defending himself against charges related to the collapse of his previous crypto exchange, FTX, and his hedge fund, Alameda Research.
SBF faced a series of indictments, comprising charges such as conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering, and conspiracy to circumvent campaign finance regulations.
During the court proceedings in January, the attorney representing FTX revealed that the co-founder of the cryptocurrency company utilized a covert method to launder funds to Alameda Research, a sister company. Caroline Ellison, SBF’s former girlfriend and CEO of Alameda, confessed to conspiring with Sam Bankman-Fried to deceive FTX investors and customers.
On Thursday, federal prosecutors made an announcement stating their intention to drop multiple charges against this major Democrat donor.
ABC reported:
Federal prosecutors in New York said they would drop several criminal charges, at least for now, against disgraced crypto executive Sam Bankman-Fried if the judge agrees to try him later on those charges.
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.
