FTX founder Samuel Bankman-Fried still faces charges after 2022 indictment | Fact check
The claim: The Biden administration dropped all charges against crypto founder Sam Bankman-Fried
A June 18 tweet (direct link, archive link) claims an entrepreneur accused of one of the largest fraud schemes in U.S. history saw the federal charges against him disappear.
“Breaking: Biden administration quietly DROPS all charges against Sam Bankman-Fried,” reads the tweet. “The crypto founder who stole $4 billion and gave half of it to Democrat candidates is now free as a bird.”
It was retweeted more than 8,000 times in nine days. It was also shared more than 800 times on Facebook.
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Our rating: False
Prosecutors withdrew several charges against Bankman-Fried, but those charges will be heard at a second trial scheduled for 2024. Bankman-Fried still faces federal charges related to his cryptocurrency exchange FTX.
Some charges will be heard at later trial, but Bankman-Fried still faces federal charges
Bankman-Fried, the founder of FTX, was arrested in December 2022 and charged him with eight crimes, including fraud, money laundering and campaign finance violations. Five more charges were added to the indictment after Bankman-Fried’s extradition from the Bahamas.
Federal prosecutors in June said they would withdraw the charges added to Bankman-Fried’s indictment after his extradition, The New York Times reported, noting that the withdrawn charges include accusations of bank fraud and bribing a foreign government.
Fact check: No, US aid to Ukraine wasn’t laundered by crypto firm FTX and sent to Democrats
But that doesn’t mean those charges will go away completely.
“Any reporting that all charges against Bankman-Fried have been withdrawn is false,” said Nicholas Biase, spokesperson for the U.S. Attorney’s Office in the Southern District of New York.
The eight original charges will be the focus of a trial expected to start in October, while a trial for the five more recent charges is scheduled for February 2024, Biase said.
News outlets, including CNN and ABC News, also reported several charges were withdrawn but that Bankman-Fried still faces federal charges.
Paste BN reached out to users who shared the post for comment but did not immediately receive a response.
Reuters also debunked the claim.
Our fact-check sources:
- Nicholas Biase, June 25, Email exchange with Paste BN
- ABC News, June 15, US offers to drop some charges for now against Sam Bankman-Fried
- CNN, June 15, Sam Bankman-Fried's trial to be split up as attorneys challenge some counts
- The New York Times, June 15, Prosecutors Agree to Withdraw New Charges Against Sam Bankman-Fried
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