Prosecutors Drop Plans for Second Trial of Bankman-Fried

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Facts

  • Federal prosecutors in New York have decided not to try the fallen crypto mogul Sam Bankman-Fried (SBF) on the illegal campaign donation charge that had previously been severed from the financial fraud case against him.1
  • Writing to US District Judge Lewis Kaplan on Friday they argued that public interest in a timely resolution to the case offsets any need for a second trial, adding that the alleged conduct could be factored into his sentence as the evidence to be presented was similar to that from the first proceeding.2
  • In November, the 31-year-old FTX founder and chief executive was found guilty of seven criminal charges of fraud and conspiracy linked to the collapse of the company and its sister hedge fund Alameda Research. He will be sentenced on March 28 and faces a potential sentence of up to 110 years.3
  • CryptoLaw founder John Deaton, Rep. Tim Burchett (R-Tenn.) and other prominent conservatives commentators have slammed the Department of Justice for this development, claiming it shields politicians whose campaigns received money from FTX and its executives.4
  • Bankman-Fried personally donated at least $40M to politicians and political action committees ahead of the 2022 midterm elections, mostly to Democrats and liberal-leaning groups. However, he claimed on a phone call in November that he had contributed an equal amount to the GOP.5

Sources: 1ABC News, 2The Wall Street Journal, 3NBC, 4FOX News and 5Time.

Narratives

  • Republican narrative, as provided by The Gateway Pundit. As the Biden administration opts to drop campaign finance charges against one of the main Democrat donors of 2022, it has become undeniable that America possesses a two-tiered justice system, with political allegiance playing a decisive role.
  • Democratic narrative, as provided by Washington Post. A second trial of SBF is simply not necessary, as proceedings would be based on duplicated evidence that can be considered in the judge's sentencing. In fact, a second trial would actually be counterproductive in the pursuit of justice because it would delay forfeiture and restitution orders for his victims.

Predictions