US Prosecutors Drop Charges Against Sam Bankman-Fried
US prosecutors have decided not to pursue the remaining charges against Sam Bankman-Fried, including allegations of foreign bribery and bank fraud. However, it is the dropped charge of unlawful political donations that has sparked significant concern within the crypto community, given Bankman-Fried’s well-documented contributions to politicians from both major parties. Prosecutors had claimed that Bankman-Fried used customer funds to the tune of $100 million for political donations.
Expressing his discontent, Coinbase’s Chief Legal Officer, Paul Grewal, denounced the decision as a “miscarriage of justice.” In a thread, Grewal emphasized the importance of public accountability for campaign finance charges. “The public interest in a public airing of charges almost always matters. Campaign finance charges are at the very top of this list,” he wrote. Grewal further emphasized the need for answers regarding what politicians and others knew and when they knew it.
Presidential Candidate Robert F. Kennedy Voices Concern As Well
The dropped charge and the implications it carries have raised eyebrows and garnered strong reactions from a number of other individuals, too. Presidential candidate Robert F. Kennedy, Jr., running as an Independent in the 2024 race, claimed that this highlights the broader issue of normalized corruption. “No one is even surprised. THAT is a bigger problem than the fraud itself. It shows how normalized corruption has become,” Kennedy stated in a quote-post on X, referencing the decision.
The sentiment resonated with many members of the community, including prominent figure Elon Musk, who simply responded with “!!” in agreement.
Bankman-Fried’s Sentencing and Prosecutors’ Decision
Prosecutors, led by U.S. Attorney for the Southern District of New York Damian Williams, have also chosen not to pursue a charge of unlawful political donations, which was separated from the initial indictment due to an extradition dispute with the Bahamas. In a letter explaining the decision, prosecutors noted that evidence related to several charges had already been presented during Bankman-Fried’s original trial, where he was found guilty on all seven counts of fraud and conspiracy tied to his leadership of FTX and Alameda Research, its sister trading firm. They emphasized that the upcoming sentencing of Bankman-Fried, scheduled for March 28, 2024, would address necessary aspects such as forfeiture and restitution for the victims.
Looking ahead, Bankman-Fried faces a potentially lengthy prison sentence. US District Judge Lewis Kaplan, presiding over the case in Manhattan, will determine his fate. The prosecution believes that a second trial would be redundant, as most evidence pertinent to the additional charges was already presented in the first trial. Despite his conviction, Bankman-Fried plans to appeal. During the trial, he admitted to making operational errors in managing FTX, such as neglecting risk management, but denied any allegations of stealing customer funds.
Hot Take: Coinbase’s Chief Legal Officer Criticizes Dropping Charges
Coinbase’s Chief Legal Officer, Paul Grewal, has expressed disappointment and called it a “miscarriage of justice” after US prosecutors decided not to pursue additional charges against Sam Bankman-Fried. Grewal believes that public accountability for campaign finance charges is crucial and that dropping the charge of unlawful political donations is concerning given Bankman-Fried’s documented contributions to politicians. The decision has also raised concerns about normalized corruption within the crypto community.
The dropped charge has garnered attention from other individuals as well. Presidential candidate Robert F. Kennedy Jr., running as an Independent in the 2024 race, highlighted the broader issue of corruption and how it has become normalized. The decision by prosecutors not to pursue certain charges has sparked strong reactions and underscores the need for answers regarding politicians’ knowledge and involvement.
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