Federal prosecutors have dropped one count of conspiracy to make unlawful campaign contributions against Sam Bankman-Fried, the alleged crypto crook and founder of FTX, due to a legal issue surrounding his extradition from the Bahamas to the US. The dismissal comes after the Caribbean country clarified that it did not intend to extradite Bankman-Fried on that particular charge. The extradition treaty between the US and the Bahamas stipulates that the island nation must give consent to the charges against Bankman-Fried. The dropped charge alleged that Bankman-Fried used millions of dollars in FTX funds to gain favor with candidates who could pass laws beneficial to his company. However, Bankman-Fried still faces 12 other charges related to stealing from customers of his now-defunct FTX cryptocurrency exchange. Five of these charges were added after his extradition and also require consent from the Bahamas. A judge has ruled that the trial will proceed in October on the original charges, as well as a separate proceeding for the charges that are still in question. Bankman-Fried is currently on home detention in California on a $250 million bond.

In a separate development, Bankman-Fried's bail conditions have been tightened after US prosecutors accused him of witness tampering. Prosecutors claim that Bankman-Fried shared personal writings of his ex-girlfriend and former FTX offshoot Alameda Research CEO, Caroline Ellison, with a reporter. The writings detailed Ellison's dissatisfaction with her job and her breakup with Bankman-Fried. Ellison has agreed to testify against Bankman-Fried as part of a deal for leniency after admitting to charges that carry a potential prison sentence of up to 110 years. In response to the accusation of witness tampering, Judge Lewis A. Kaplan imposed a "gag order" on Bankman-Fried, restricting his ability to speak publicly. Prosecutors have also requested that Bankman-Fried be jailed until his trials in October. Bankman-Fried's lawyer argued that his client should not be punished for seeking to protect his reputation, including through the media. The judge has given both sides until August 3 to present their arguments regarding whether Bankman-Fried should be taken into custody.

Bankman-Fried's defence lawyers have rejected the claim that his discussions with a New York Times reporter constituted witness tampering. However, they have agreed to accept a gag order to prevent public statements that could interfere with the criminal fraud case. The defence has requested that the order also apply to prosecutors and potential witnesses, including FTX CEO , to ensure a fair trial. Bankman-Fried is set to go on trial on October 2, facing charges of stealing customer funds. In a letter to the judge, his lawyer confirmed that Bankman-Fried had spoken with a New York Times reporter and provided documents written by Caroline Ellison, who has cooperated with prosecutors. The article published by the New York Times included excerpts from Ellison's personal Google documents in which she expressed unhappiness with her job and the end of her relationship with Bankman-Fried. Ellison, who led Bankman-Fried's Alameda Research hedge fund, has pleaded guilty to defrauding investors. The defence argues that Bankman-Fried's conduct did not violate the protective order in the case or any bail conditions. They also claim that FTX's current leader, Ray, has attacked and vilified Bankman-Fried, potentially influencing public opinion.