FTX, a major player in the cryptocurrency industry, filed for bankruptcy last year, experiencing an overnight loss of billions of dollars.
Sam Bankman-Fried (SBF), the owner of FTX, emerged as the second-largest donor to the Democratic Party during the 2022 midterm elections.
In early January, Sam Bankman-Fried pleaded not guilty to all eight charges connected to the downfall of his cryptocurrency Ponzi scheme.
On Tuesday, he appeared in a federal court in New York.
Sam Bankman-Fried was indicted on eight counts, including charges of conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations.
Federal prosecutors made an announcement on Thursday stating their intention to dismiss multiple charges against this prominent Democratic party donor.
As reported by ABC News:
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.
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