Manhattan's top federal prosecutor, resigns before Trump's inauguration

New York City's chief federal prosecutor, Damian Williams, who oversaw the convictions of prominent figures like U.S. Senator Bob Menendez and cryptocurrency tycoon Sam Bankman-Fried, announced his resignation on Monday, just days before Donald Trump's run for president again.

Williams, who was nominated to the position in 2021 by outgoing Democratic President Joe Biden, will resign on December 13 in preparation for the inauguration of Republican Donald Trump on January 20, as Reuters reported.

Williams will step down as acting US attorney for the Southern District of New York, and his current deputy, Edward Kim, will take over.

Notable for its prominence in prosecuting high-profile cases of public corruption and financial fraud, the office enjoys an exceptional level of autonomy from the United States Justice Department.

Trump's Announcement

The nomination of Jay Clayton, a former chair of the Securities and Exchange Commission, to head the office has already been announced by Trump. The United States Senate must confirm the appointment for the position.

Williams made good on his long-stated goal of prosecuting ex-billionaire financiers for fraud during his time in office.

In November 2023, Bankman-Fried was found guilty and handed a 25-year prison term. Prosecutors said that he had committed one of the worst financial scams in U.S. history, stealing approximately $8 billion from clients of his FTX cryptocurrency exchange.

Sung Kook "Bill" Hwang, founder of Archegos Capital Management, was found guilty in July and given an 18-year prison term for manipulating stock markets, which resulted in billions of dollars lost by Wall Street institutions.

Hwang and Bankman-Fried Deny Guilt

Williams also intensified his office's emphasis on public corruption. In July, he successfully obtained the conviction of United States Senator Bob Menendez, a Democratic from New Jersey, on charges of fraud and acting as a foreign agent. Menendez, who has since resigned and denied any wrongdoing, is currently anticipating his sentencing.

Williams filed bribery charges against Eric Adams, the mayor of New York City, who is also a Democrat, in September. Adams has entered a plea of not guilty.

"I am confident I am leaving at a time when the office is functioning at an incredibly high level - upholding and exceeding its already high standard of excellence, integrity, and independence," Williams said in a statement.

Clayton stated last week at a conference that his office is prepared to tackle national security cases, fight against money laundering and terrorism financing, and remain vigilant in this fight.