On July 26, the Department of Justice (DOJ) informed federal judge Lewis A. Kaplan that they "do not intend to proceed" with a campaign finance charge against FTX founder Sam Bankman-Fried.
This decision came after consulting with The Bahamas regarding the campaign finance charges mentioned in Bankman-Fried's extradition document last year.
The DOJ cited "treaty obligations" with The Bahamas as the reason for dropping one of the charges related to political donations against Sam Bankman-Fried.
In late 2022, the Department of Justice indicted Bankman-Fried on eight counts and added five more charges, one of which alleged a violation of campaign finance laws.
Campaign finance laws are linked to political donations, and charges can be filed against individuals or entities involved in the political process, including candidates, political committees, donors, or other organizations.
However, Bankman-Fried's defense team contended that The Bahamas, where he was initially arrested, must consent to those additional charges under the U.S. extradition treaty.
As a result, Judge Lewis Kaplan of the District Court for the Southern District of New York allowed the DOJ to separate those charges.
During the court hearing on Wednesday, the DOJ stated that they are awaiting clarification from The Bahamas government on whether the specific charge was included in Bankman-Fried's extradition documents when he was arrested in December 2022.
Bankman-Fried is known for being one of the biggest political donors in American politics.
He has been accused of violating campaign finance laws through a scheme to unlawfully direct millions of dollars to candidates and political action groups before the 2022 midterm elections.
Bankman-Fried contributed
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