The US Department of Justice has announced that it will drop some of the charges against FTX founder Sam Bankman-Fried if the Bahamas says it violated extradition conditions.
Awaiting Bahamas Government Approval to Continue Accusations Against Former FTX CEO Sam Bankman-Fried
Federal prosecutors said in a statement today that they are awaiting Bahamian government approval for three additional charges against Bankman-Fried after he was arrested and extradited to the United States in December.
"The government will continue with new charges if the Bahamas allow these charges to be prosecuted, and will not continue with these charges if the Bahamas rejects the U.S. government's request," the prosecutors said.
Bankman-Fried is accused of stealing billions of dollars from FTX clients, while defrauding investors and lenders through crypto investment firm Alameda Research.
Prosecutors initially charged Bankman-Fried with eight counts, including various fraud charges, money laundering offenses, and plotting to violate campaign finance law with a plot to mask the true source of political donations.
Bankman-Fried's lawyers argue that many of the new charges violate the rules of the extradition treaty between the United States and the Bahamas. Prosecutors responded Monday that the new charges were not in violation of the agreement and that it fell to the Bahamas, not Bankman-Fried, to challenge it.
Bankman-Fried's trial is scheduled to begin on October 2. A federal judge in Manhattan is expected to hear oral arguments about the latest motions on June 15.
*Not investment advice.
