Sam Bankman-Fried Exonerated? Prosecutors Dismiss Remaining Charges Amid Industry Outrage

Crypto tycoon Sam Bankman-Fried has been found guilty of seven counts of fraud and conspiracy related to his leadership of FTX and Almeda Research. However, U.S. prosecutors have decided not to add more charges, including claims of foreign bribery and bank fraud. This unexpected decision has sparked disappointment and criticism in the crypto industry, with critics accusing the authorities of covering up a major political and crypto scandal.

Several prominent figures, including presidential candidate Robert F. Kennedy and Coinbase’s Chief Legal Officer, have expressed concern. They fear that the significance of this moment in American crypto history may be downplayed.

Bankman-Fried made headlines in 2021 for his significant political donations to both Democratic and Republican politicians. The dropped charges are the latest twist in a saga that involves foreign bribery, bank fraud, operating as an unlicensed money-transmitting business, and securities and commodities fraud.

According to the prosecutors, the charges of unlawful donations were already addressed during SBF’s trial in October. They also explained that they needed to proceed with the case as The Bahamas had not responded to the U.S.’s request for SBF’s prosecution on the additional charges. The majority of the evidence planned for the second trial had already been presented in the first trial, so it can now be considered in the sentencing procedure scheduled for March 2024.

The implications of this case extend beyond the legal realm. The crypto industry is closely watching to see how fairness will be ensured for investors affected by this high-profile bankruptcy. The resolution of this case will unfold in due course.