Former International Monetary Fund chief Dominique Strauss-Kahn has been released from house arrest as the sexual assault case against him moved one step closer to dismissal.
He was released after prosecutors told a Manhattan judge that they had serious problems with the case and is now free to travel within the US, although he cannot leave the country.
Prosecutors acknowledged that there were significant credibility issues with the 32 year hotel housekeeper who accused Strauss-Kahn of trying to rape her in May.
He was released on his own recognizance.
The development in State Supreme Court in Manhattan represented a massive u-turn in the case.
French Socialists still believe Strauss-Kahn could still run for the presidency in the French elections next year if the case collapses.
Prosecutors believe the maid lied about their encounter, has links to a drug dealer and received strange payments into her bank account, according to The New York Times.
The woman's account of why she received asylum in the US, and even her claim to own only one mobile phone, have also been called into serious doubt, the report said.
But her lawyers insist she was raped and gave graphic descriptions of the allegations she made against Strauss-Kahn outside the steps of the court today.
From the start, the case hinged on the victim’s alleged evidence.
The woman, a 32-year-old Guinean immigrant was a cleaner at the Sofitel hotel in Manhattan where he was staying.
The case resumes on July 18 after prosecutors agreed to lifting the bail conditions but not to dropping the case.