The sexual assault case against former International Monetary Fund Director Dominique Strauss-Kahn faced possible collapse Friday after credibility issues arose with the woman who alleged assault against him. The issues resulted in the French politician being released from house arrest.

Prosecutors disclosed the issues with the housekeeper's credibility with the French politician's defense in a meeting on Thursday, The New York Times reported.

The maid had alleged that she was sexually assaulted by Strauss-Kahn in a Manhatten hotel suite in May. Although forensic tests found evidence of a sexual encounter between Strauss-Kahn and the woman, prosecutors said they now do not believe much of what the woman has told them.

The New York Times reported that among the issues raised, was that the 32-year-old housekeeper, who is Guinean, has possible links to people involved in criminal activities, including drug dealing and money laundering.

Strauss-Kahn, 62, had been considered a strong contender for the French presidency before being accused of sexual assault.

The woman's attorney, in a written statement said, "Nothing changes one very important fact, namely, that Dominique Strauss-Kahn violently sexually assaulted the victim inside of that hotel room at the Sofitel."

Strauss-Kahn resigned from his post as managing director of the International Monetary Fund after the accusations were brought against him.

He had been under 24-hour home confinement and wearing an ankle monitor after posting $1 million bail and a $5 million bond.

While prosecutors had not dismissed the case on Friday, Strauss-Kahn will not be free to move throughout the United States, with prosecutors retaining his passport.

[The New York Times]