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FTX founder Sam Bankman-Fried arrives at Manhattan Federal Court for a trial in New York, United States on June 15, 2023.

Fatih Aktas/ | Anadolu Agency | Getty Images

Federal prosecutors on Thursday asked a judge to drop five charges against alleged crypto fraudster Sam Bankman-Fried, including bribery of a foreign government official, after a Bahamas court ruling called into question whether the US government followed the proper procedure for bringing charges against the former billionaire.

Bankman-Frieda’s legal team previously argued before both US and Bahamian judges that the charges were not part of the original indictment against the FTX founder, which saw him extradited from the Bahamas several months ago. A Bahamian judge said earlier this week he would review Bankman-Fried’s arguments, prompting a request from federal prosecutors.

However, the charges were only “cut off” or pushed back to 2024, giving the federal government enough time to ensure that the terms of the US-Bahamas extradition treaty were met and satisfy the Bahamian government’s concerns.

The resignation means Bankman-Frieda’s legal team will now likely have to prepare for two legal battles: one over the original eight-count indictment later this year and another in 2024 over the five counts that federal prosecutors have asked to be dismissed.

U.S. Attorney Damian Williams’ office is prosecuting Bankman-Fried. He was originally indicted on eight counts, including conspiracy to commit mail and wire fraud, for his role in allegedly orchestrating the theft of billions of dollars in customer assets and the collapse of the FTX crypto exchange in late 2022.

Bankman-Fried has entered a not guilty plea and is expected to stand trial later this year.

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