- U.S. prosecutors to supersede indictment in observance of a treaty with the Bahamas.
- The Count 8 indictment borders on financial campaign schemes done by Sam Bankman-Fried to gain political influence.
- The former FTX CEO also faces allegations of trying to corrupt key witnesses.
According to the details of a letter posted on Twitter by public interest lawyer Matthew Russell Lee, the US claims its treaty obligations prevent it from proceeding on Count 8 of the original Indictment in the Sam Bankman-Fried case.
Notably, Count 8 of the indictment charges borders on the financial campaign to gain political influence. At the height of his fame, Sam-Bankman Fried made several donations which are now subject to investigative actions.
Authorities in the Bahamas, where Bankman-Fried was detained, claimed they had declined to extradite him based on that accusation; therefore, the charge of campaign funding was dismissed. Not willing to give up, the US DoJ said it would supersede the indictment.
Sam-Bankman Fried is also facing charges that could possibly discredit trial witnesses. According to the filing on Thursday to a judge, prosecutors allege that the ex-FTX CEO went beyond benignly exercising a constitutional right to speak to the press: “He took covert steps intended to improperly discredit a trial witness and taint the jury pool.” Per the filing, the CEO also repeatedly reached out to FTX.UX General Counsel Ryne Miller and shared Caroline Ellison’s diary to corrupt influential witnesses.
The FTX founder’s woes started after the crypto exchange went down the drain. Bankman-Fried was charged with a number of offenses relating to an alleged multi-billion dollar fraud against the company’s investors last year. If proven guilty, he faces a lengthy jail sentence.
With a trial set for August, the CEO has pleaded not guilty to all the charges. Reacting to the news, a Twitter user tweeted that the superseding indictment screams foul play. According to the user, if the U.S wanted to go ahead with the charges, they could have done so unhindered.
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