US prosecutors have chosen to drop the remaining charges against Sam Bankman-Fried, which include allegations of foreign bribery and bank fraud.
The decision, however, has stirred significant concern within the crypto community, particularly concerning the dropped charge of unlawful political donations, given Bankman-Fried’s extensive contributions to politicians from both major parties.
Prosecutors had asserted that he misused customer funds, diverting approximately $100 million for political contributions.
The decision drew sharp criticism from Coinbase’s Chief Legal Officer, Paul Grewal, who condemned it as a “miscarriage of justice.”
Grewal stressed the importance of public accountability, particularly in cases related to campaign finance charges, stating, “The public interest in a public airing of charges almost always matters.
Campaign finance charges are at the very top of this list.” He also emphasized the need for transparency regarding what politicians and others knew and when they knew it.
Scheduled for March 28, 2024, Sam Bankman-Fried’s sentencing remains on the horizon, surrounded by controversy.
Independent presidential candidate Robert F. Kennedy, Jr., voiced concern, noting that this case underscores the broader issue of normalized corruption, saying, “No one is even surprised.
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THAT is a bigger problem than the fraud itself. It shows how normalized corruption has become.”
The sentiment found resonance within the community, with figures like Elon Musk expressing agreement with a simple “!!” in response.
Prosecutors, led by U.S. Attorney for the Southern District of New York Damian Williams, also opted not to pursue the charge of unlawful political donations, which had been separated from the initial indictment due to an extradition dispute with the Bahamas.
In their explanation, prosecutors cited the presentation of evidence related to several charges during Bankman-Fried’s original trial, where he was found guilty of all seven counts of fraud and conspiracy associated with his leadership of FTX and Alameda Research, its sister trading firm.
They indicated that the forthcoming sentencing would address critical aspects, including forfeiture and restitution for the victims.
Looking ahead, Bankman-Fried faces the prospect of a potentially lengthy prison sentence, with US District Judge Lewis Kaplan presiding over the case in Manhattan.
The prosecution believes that a second trial would be redundant, as most relevant evidence for the additional charges had already been presented in the first trial.
Despite his conviction, Bankman-Fried intends to appeal, maintaining that while he made operational errors in managing FTX, such as neglecting risk management, he did not steal customer funds.
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