U.S. drops plan to prosecute convicted SBF for over $100M in unlawful campaign donations

In a filing connected Dec. 29, U.S. prosecutors said that they volition not beryllium pursuing a 2nd proceedings for further charges against erstwhile FTX laminitis Sam Bankman-Fried (SBF). On Nov. 3, SBF was convicted of 7 charges of fraud.

SBF was expected to beryllium prosecuted connected six further charges successful a abstracted trial. The charges included unlawful governmental run contributions, portion a superseding indictment successful March 2023 added charges of conspiracy to bribe overseas officials, conspiracy to perpetrate slope fraud, conspiracy to run an unlicensed money-transmitting business, arsenic good arsenic substantive securities and commodities fraud.

SBF reportedly donated $119 cardinal to governmental campaigns. He was the 4th largest donor successful the 2022 midterm elections, with donations exceeding $39 million.

According to the filing, the complaint for unlawful governmental contributions was portion of the archetypal indictment. However, the unlawful donations charge, on with those brought by the superseding indictment, were included aft SBF was extradited to the U.S. from The Bahamas successful December 2022.

In July 2023, The Bahamas informed the U.S. that it did not consent to SBF being tried connected the further charges, since they were not portion of the extradition treaty. Therefore, to debar delay, the prosecutors proceeded with SBF’s proceedings successful October with the 7 charges included successful the extradition treaty.

Limited caller evidence

Prosecutors noted that they produced grounds of SBF’s unlawful governmental donations astatine the proceedings arsenic nonstop grounds of the 7 counts of charges against him. The prosecutors besides presented evidence, including documents and witnesser testimony, to beryllium SBF’s guilt successful the remaining 5 charges, the filing noted.

Therefore, a 2nd proceedings would person progressive presenting overmuch of the aforesaid grounds that was presented successful the archetypal trial, the prosecutors noted.

More importantly, prosecutors said that the Court tin see the grounds presented astatine the archetypal proceedings during his sentencing successful March 2024. The filing added:

“…a 2nd proceedings would not impact the United States Sentencing Guidelines scope for the defendant.”

This means that the 2nd proceedings would not person affected the duration of SBF’s sentence.

The request for punctual solution outweighs the request for a 2nd trial

According to the prosecutors, a 2nd proceedings would origin unnecessary delays successful the solution of the case. This is due to the fact that The Bahamas is yet to respond to the U.S.’s petition for prosecuting SBF connected the further charges.

Therefore, proceeding with the sentencing would “advance the public’s interest,” which “outweighs” the involvement successful pursuing a 2nd trial, the prosecutors noted. They added that a punctual solution is peculiarly important successful this lawsuit since the judgement volition apt see “orders of forfeiture and restitution for the victims.”

It is uncertain however the prosecution’s determination to driblet the unlawful donations complaint volition impact FTX’s efforts to recoup the contributions.

The station U.S. drops program to prosecute convicted SBF for implicit $100M successful unlawful run donations appeared archetypal connected CryptoSlate.