US Department of Justice formally moves to drop Halkbank case

The U.S. Department of Justice formally asked a federal judge on Wednesday to dismiss its criminal case against Halkbank, saying it has no intention of prosecuting the Turkish state-run lender.



A lawyer for Halkbank did not immediately respond to a request for comment. Wednesday's announcement came after Halkbank and the U.S. federal government agreed in March to end the long-running criminal case.



That agreement promised to relieve a lingering irritant in relations between NATO allies Turkey and the U.S. The settlement sent Halkbank's shares soaring on the Istanbul stock exchange.



Halkbank was charged during Trump's first term in office with helping Iran evade American economic sanctions.



Turkish President Recep Tayyip Erdogan once called the case unlawful and "ugly." But the countries are now experiencing their warmest ties in decades since Trump's return to the presidency last year.



The Justice Department has said dropping the prosecution would further the U.S. interest in curbing support for Iran.