The US Federal Government has opted not to pursue a second trial against Sam Bankman-Fried, the former head of cryptocurrency exchange FTX. Prosecutors have dropped six charges against the scammer including campaign finance violations and conspiracy to commit bribery charges. The development follows the first criminal trial where Bankman-Fried was found guilty on multiple counts, including wire fraud and conspiracy to commit financial fraud.
The decision was made by U.S. District Judge Lewis Kaplan who claimed that much of the evidence relevant to the additional charges was already presented during Bankman-Fried’s initial trial. In that month-long trial, which featured the testimonies of nearly 20 witnesses, the jury rapidly reached a unanimous decision, finding SBF guilty on all seven charges.
The decision to drop six additional charges against Bankman-Fried raises questions about the broader implications of his financial activities. His significant political contributions have come under scrutiny, particularly his donations during the 2022 midterms totaling more than $100 million dollars. These donations, which included substantial amounts to dark money groups were allegedly made with customer funds.
The case against Bankman-Fried underscores the use of misappropriated funds for significant political contributions, highlighting the grey areas of political influence.
The abandoned second trial, initially set for March, would have addressed additional criminal counts, including conspiracy to operate an unlicensed money transmitting business and substantive securities fraud and commodities fraud. However, as U.S. Attorney Damian Williams noted in his letter to the court, this further prosecution would not impact the sentencing guidelines, given that the court can already consider all relevant conduct from the first trial.
Now, the focus shifts to the looming sentencing, scheduled for March 28. The legal community and the public alike await to see how much time Bankman-Fried, who is facing over a century in prison, will actually serve.
