A New York judge released former International Monetary Fund Director Dominique Strauss-Kahn on his own recognizance Friday, following serious credibility issues with the woman who accused him of sexual assault.

The case has changed dramatically but prosecutors said "we are not dismissing the case."

Strauss-Kahn's release significantly eases the extraordinary bail conditions that had been previously ordered. He had been released from jail on $6 million bail but was under house arrest in a luxury townhouse in Manhattan's Tribeca neighborhood.