The FTX collapse, which caused the cryptocurrency markets to hit an all-time low last year, has garnered significant attention. SBF, who admitted to selling synthetic cryptocurrencies to customers, also confessed to defrauding them. The FTX fraudster is now under house arrest awaiting a court date.
Current Status of the FTX Case
US Federal Prosecutors have officially dropped the campaign financing charges against former FTX CEO Sam Bankman-Fried. Initially, the charge was related to potential violations by Bankman-Fried regarding Federal Election campaigns. Prosecutors assigned to the criminal case against Bankman-Fried announced yesterday that this charge would be dropped.
However, the bankrupt co-founder of FTX still faces a series of fraud charges related to the collapse of the cryptocurrency exchange. It was revealed that he had planned to allocate $1 billion to the 2024 elections and had made massive donations to numerous politicians before the bankruptcy. It was also discovered that he engaged in fraudulent sales and made fake purchases to drain the company.
The Collapse of FTX
The collapse of FTX was undoubtedly the biggest event in the industry’s recent history. Furthermore, the collapse led to a series of criminal complaints against the executives behind the company. Now, the former CEO has seen one of these charges dropped. Specifically, US federal prosecutors have officially dropped the campaign financing charges against Sam Bankman-Fried from FTX.
After the platform collapsed rapidly, Bankman-Fried was arrested in the Bahamas. He was later extradited from the island to the United States. There, he faced more than 13 charges related to the collapse of the company, Prosecutors announced on Wednesday that Bahamian officials and the country’s government had informed them that they did not intend to extradite Mr. Bankman-Fried on campaign financing charges. Therefore, the prosecution preferred not to insist on campaign contributions during the upcoming trial.
The dropping of the campaign violations can be seen as a win for Bankman-Fried. However, he will still have to defend himself against numerous other charges in the trial scheduled for October.
