Political commentator Ian Miles Cheong said the Department of Justice decided not to pursue campaign finance charges against Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX. Bankman-Fried, who donated millions of dollars to politicians during the 2022 election cycle, still faces charges related to his misuse of FTX customer funds.
"Sam Bankman-Fried is getting away with it," Cheong said in a July 27 post on X, formerly known as Twitter. "The Department of Justice will not pursue campaign finance charges against SBF. He may face some time for leaking Caroline Ellison's diaries to the New York Times but that's a nothingburger."
The campaign finance charge was reportedly dropped because it was not included in the warrant of surrender sent to Bahamian authorities in December, according to AP News. Bankman-Fried's attorneys sought to have the charge dismissed in May, arguing that pursuing the charge would set a "concerning precedent that would enable prosecutors to engage in a bait-and-switch” by adding additional charges against a defendant after he has been extradited.
Bankman-Fried could have faced up to five years in prison if convicted of the campaign finance charge, which stemmed from government assertions that the former crypto mogul directed more than $100 million from his hedge fund, Alameda Research, into political donations to more than 300 recipients, AP News reported. Bankman-Fried's trial is set to begin in October. He has been residing at his parents' home in California as part of his $250 million bail package.
Bitcoin.com’s Business Development Manager Ben Friedman wrote in an opinion piece that Bankman-Fried's legal situation raises concerns about "double standards" and how "connections and money" can impact legal proceedings. Friedman highlighted Bankman-Fried's "close ties" with the Securities and Exchange Commission, as well as the "substantial political donations" he made to "prominent" public figures including Joe Biden and Elizabeth Warren.
Friedman argued the SEC seems to treat other crypto exchanges more harshly than FTX, according to his opinion piece.
"It’s hard not to notice the different enforcement priorities when it comes to cryptocurrency exchanges," Friedman said in his opinion. "While exchanges like Binance and Coinbase faced regulatory action, FTX seems to have dodged similar consequences despite the serious allegations against its founder. This inconsistency makes us wonder if all crypto exchanges are held to the same standards."
