(Ken Silva, Headline USA) Federal prosecutors in the Sam Bankman–Fried case said Wednesday that they were dropping the campaign-finance charge against “SBF”—sparking uproar among critics who said the move was designed to suppress information about the crypto-fraudster’s political donations, which were mostly made to Democrats.
The development in the Southern District of New York came unexpectedly, as the presiding judge had already rejected Bankman–Fried’s motion to dismiss the campaign-finance charge. It also came the same day as prosecutors argued that SBF should be jailed for bail violations.
In explaining their reason for dropping the campaign-finance charge, prosecutors claimed that they were notified that government officials in the Bahamas—where Bankman–Fried operated his now-defunct crypto firm, FTX—didn’t intend for him to be extradited to face that count.
“Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count,” said. U.S. Attorney Damian Williams.
The flimsy pretense is unlikely to assuage opponents of the Biden administration’s rampant corruption, who have frequently slammed the two-tiered justice system under Attorney General Merrick Garland that protects law-breaking Democrats and targets law-abiding conservatives.
Some have pointed out the fact that federal regulators may have turned a blind eye to the many red flags at Bankman–Fried’s glorified Ponzi scheme because of his political patronage and connections.
Williams and his fellow prosecutors had charged Bankman–Fried for his allegedly illegal political donations in Feburary, after he was already arrested and extradited.
According to the DOJ, Bankman–Fried used “straw donors” to mask his political contributions to Democrats and Republicans alike.
FTX’s political contributions have been a subject of controversy since it collapsed last year. During the 2022 midterm election cycle, SBF contributed at least $40 million—making him the second-largest Democrat donor behind George Soros—while fellow former FTX executive Ryan Salame was the 10th largest GOP donor with at least $19 million in contributions.
Bankman–Fried has pleaded not guilty to charges that he cheated investors and looted FTX customer deposits.
The 31-year-old, who was seen as a crypto whiz before the exchange collapsed last year, has been free on $250 million bond since his December extradition from the Bahamas.
He is required to remain at his parents’ home in Palo Alto, California, and his electronic communications have been severely limited.
He is scheduled for trial on Oct. 2 in Manhattan.
The Associated Press contributed to this report.
Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.
