The name FTX gained significant attention starting in late 2022. The downfall of the billion-dollar enterprise had notable effects on the entire market. US federal prosecutors had formally dismissed the campaign finance charges that were brought against Sam Bankman-Fried, the former CEO of FTX, in July. Additionally, these charges pertain to potential violations related to contributions to federal election campaigns.
However, a few days after that statement, the stance seems to have flipped. The US Department of Justice is now holding firm on the opinion that they will argue that SBF conducted illegal campaign finance schemes. The prosecutors revealed the decision in a letter on Tuesday.
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DOJ says SBF will remain charged with an illegal campaign finance scheme
Next week, prosecutors expect to submit a revised indictment against Sam Bankman-Fried, encompassing seven charges, according to the letter. The upcoming indictment will retain all the charges from the initial filing, with the exception of the campaign finance charge.
The letter reads, “The superseding indictment will make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme as part of the fraud and money laundering schemes originally charged.”
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According to the DOJ’s description, as part of the initially alleged money laundering scheme, the defendant was involved in hiding the source of his illicit proceeds by using political straw donations.