Two civil lawsuits, stemming from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), against former FTX CEO Sam Bankman-Fried, will be paused until completion of your criminal proceedings.
US Attorney Requests Pause in SEC and CFTC Lawsuits to Avoid “Judicial Overlap”
According to the latest decision by a New York judge presiding over the criminal case of FTX co-founder Sam Bankman-Fried, the two lawsuits filed by the two main US financial regulators will be suspended. Bankman-Fried was indicted by a federal grand jury in New York after his arrest, and the SEC and CFTC also filed charges against the former FTX chief executive. The SEC’s complaint alleges that “Bankman-Fried orchestrated a years-long fraud” dating back to the creation of FTX.
The CFTC alleges that customer deposits in FTX, including fiat currencies and cryptocurrencies, were “appropriated by Alameda for its own use” during the relevant period. This week, Damian Williams, the US Attorney for the Southern District of New York, filed a motion to stay, asking government entities to halt the lawsuits until the criminal case is resolved. Williams argued that pausing the two cases would prevent “judicial overlap” and that the criminal case in Manhattan would have a “significant impact” on both lawsuits.
The New York judge adjourned the SEC and CFTC cases until the Manhattan trial concludes. Bankman-Fried’s trial in Manhattan is scheduled to begin on October 3, 2023. The FTX co-founder is charged with eight financial crimesincluding conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodity fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations.
What do you think the outcome will be for Sam Bankman-Fried and FTX? Let us know what you think about this topic in the comments section below.
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