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The founder of FTX, Sam Bankman-Fried, will not face a campaign financing charge, according to the US Department of Justice (DOJ). The judgement was reached following negotiations with The Bahamas, which played an important role in the extradition process. Bankman-Fried was indicted on eight counts last year, and five more were added afterwards. However, his defence team contended that under the extradition treaty with the United States, The Bahamas, where he was originally arrested, required to accede to these additional accusations.

The eighth allegation from the initial indictment, campaign funding violation, was not included in the extradition pact with The Bahamas, according to a recent court filing. As a result, the DOJ informed a federal judge that, due to their treaty responsibilities to The Bahamas, they have no intention of proceeding with the campaign finance count.

The development came after a hearing about charges that Bankman-Fried tried to defame a former CEO by disclosing private documents with the New York Times. During the hearing, the DOJ moved to remand him in custody, but the judge postponed deciding on the request and set a deadline for written submissions from both the prosecution and defence.

Bankman-Fried’s trial is now scheduled for October 2. However, it is uncertain whether the campaign funding charge will be revisited in the March trial. The letter from the DOJ made no mention of this. Meanwhile, the judge issued a gag order against Bankman-Fried, banning him from making any public statements.