New Charges in Sam Bankman-Fried Case Withdrawn by U.S., Postponed till 2024

Federal prosecutors have submitted a request to a judge on Thursday, seeking the removal of five charges against alleged cryptocurrency fraudster Sam Bankman-Fried. The charges include bribery of a foreign government official. This request comes after a ruling by a Bahamas court raised doubts about the correct procedure followed by the U.S. government in bringing these charges against the former billionaire.

Bankman-Fried’s legal team had previously argued before judges in both the U.S. and Bahamas that these charges were not included in the original indictment under which he was extradited from the Bahamas several months ago. In response to Bankman-Fried’s arguments, a Bahamian judge agreed to review the case earlier this week, leading to the request from federal prosecutors.

However, instead of dismissing the charges completely, they have been “severed” and postponed until 2024. This gives the U.S. government enough time to ensure compliance with the conditions of the U.S.-Bahamas extradition treaty and address concerns raised by the Bahamian government.

Consequently, Bankman-Fried’s legal team will now have to prepare for two separate legal battles: one for the original eight-count indictment later this year, and another in 2024 for the remaining five counts that federal prosecutors have requested to sever.

The prosecution of Bankman-Fried is led by U.S. Attorney Damian Williams. Initially, Bankman-Fried was indicted on eight counts, which included conspiracy to commit mail and wire fraud, relating to allegations of orchestrating the theft of billions of dollars of customer assets and the subsequent collapse of the cryptocurrency exchange FTX in late 2022.

Bankman-Fried has pleaded not guilty and his trial is expected to take place later this year.