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The former Swedish chief prosecutor, Sven-Erik Alhem, demands an explanation from the prosecutors that filed the arrest order for Assange and later withdraw the order. Alhem tells the Swedish newpaper Dagens Nyheter that he finds the actions of the prosecutors bizarre and confusing. Alhem points out several actions to DN that he finds questionable; the arrest order was based on the assumption probable cause, the strongest grade of suspicion of crime that is required for an arrest order, and later this probable cause suspicions is withdrawn without the appearence of any new information in the case. This is very confusing.
An order for an arrest in absentia is not normally made official as this will give the suspect a chance to escape.
The Australian activist is still being investigated, however, for the lesser charge of molestation. Assange is currently based in Sweden, and implied on WikiLeaks' Twitter account that the accusations were part of a calculated smear campaign. Does Assange have good reason to be suspicious? (Listen to Assange make his claim)
This vicious smear campaign will not work: In times past the C.I.A. would just "assassinate and murder" those who undermined them, says Nicholas John Mead at his blog. These days, they have to "find other ways of 'subtly' smearing them in the public eye."