FTX founder charged in campaign finance suit

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Federal prosecutors in New York have indicated their intention to hold crypto executive Sam Bankman-Fried accountable for alleged campaign finance violations, despite dropping the charge last month due to a technicality.

Bankman-Fried, the former CEO of cryptocurrency FTX, was previously charged with a range of offences, including campaign finance violations, as part of an alleged multi-billion dollar fraud against company investors.

The dropped campaign finance charge accused Bankman-Fried of using customer and investor funds for political donations to gain influence in Washington and state capitals. However, the charge was dropped after Bahamas officials, where Bankman-Fried was arrested, did not agree to his extradition based on that specific count.

In a recent letter to the judge, prosecutors announced their plan to file a superseding indictment that would incorporate the alleged campaign finance scheme into seven existing charges. This move would clarify that Bankman-Fried remains charged with an illegal campaign finance scheme as part of the originally charged fraud and money laundering allegations.

Bankman-Fried’s attorneys declined to comment on the matter. Bankman-Fried has pleaded not guilty to all charges and is scheduled to stand trial in October. He stepped down from his role at FTX in 2022, and prosecutors have accused him of misappropriating funds from FTX to cover losses at his hedge fund, purchase real estate, and make political donations.

Bankman-Fried’s trial is being closely watched as he awaits proceedings under house arrest at his parents’ home in California. He expressed regret for the impact of the alleged actions in a previous interview and denied knowledge of improper use of customer funds.