Bangladesh, Feb. 19 -- A criminal court in Nicosia has acquitted two former senior Cypriot politicians in a closely watched case linked to the countrys controversial “golden passport” scheme, ruling that prosecutors failed to present sufficient evidence to sustain the charges. The verdict marks another significant development in the long-running legal and political fallout from the now-defunct Citizenship by Investment Program, which once drew wealthy foreign nationals seeking European Union citizenship.

The defendants, Demetris Syllouris, a former president of the House of Representatives, and Christakis Giovanis, a former member of parliament and businessman, had been accused of improperly intervening in citizenship applica...