The United States Department of Justice (DoJ) has announced its decision to withdraw the campaign finance charge against Sam Bankman-Fried, the founder and former CEO of the bankrupt cryptocurrency exchange FTX. The charge had been one of multiple legal issues faced by Bankman-Fried, who is set to face trial in October.

According to a correspondence from US Attorney Damian Williams, the decision to withdraw the campaign contributions count was made in compliance with the United States’ treaty obligations to The Bahamas. The government took into consideration the extradition document and consulted with The Bahamas before arriving at this decision.

Initially, the DoJ had intended to pursue the campaign finance charge against Bankman-Fried. However, the court has granted permission to dismiss the charge, with The Bahamas expressing their non-intention to extradite the defendant for the campaign contributions count.

Bankman-Fried’s legal counsel had argued in court that based on the terms of the extradition treaty between The Bahamas and the United States, The Bahamas must agree to the specific charges. The government’s decision not to proceed with the trial on the campaign contributions count aligns with these treaty obligations.

The court has now set a schedule for both parties to submit written submissions on the matter. In addition, an interim gag order has been issued to prevent Bankman-Fried from making any public communications.

Bankman-Fried is currently facing multiple charges, with the campaign finance contributions charge being a prominent one. However, he contested the validity of five charges, stating that they were not part of the extradition agreement that led to his return to the United States. Consequently, these charges were separated from the upcoming trial, resulting in two separate cases.

Furthermore, Bankman-Fried has challenged another campaign finance charge, arguing for its dismissal as it was allegedly not included in the official documents approving his extradition from The Bahamas.

In a recent twist, prosecutors have demanded the revocation of Bankman-Fried’s bail, accusing him of intimidating and attempting to publicly discredit former Alameda Research CEO, Caroline Ellison. The allegation arises from the claim that Bankman-Fried leaked her private journals to The New York Times.

While Bankman-Fried awaits his trial in October, it remains to be seen how the withdrawal of the campaign finance charge and the ongoing legal battles will affect his legal proceedings and the future of FTX.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.