• SEC and CFTC civil lawsuits against former FTX CEO Sam Bankman-Fried will be paused until his criminal proceedings conclude.
• US Attorney has filed a motion to stay the two cases in order to prevent “judicial overlap”.
• The Manhattan trial is set to begin on October 3rd, 2023, and Bankman-Fried is charged with eight financial crimes.
Civil Suits Against Former FTX CEO Paused
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have both filed civil lawsuits against former FTX CEO Sam Bankman-Fried. However, these proceedings have been put on hold at the request of the U.S. Attorney for the Southern District of New York until Bankman-Fried’s criminal trial concludes in Manhattan on October 3, 2023.
Charges Filed by SEC and CFTC
The SEC complaint alleges that „Bankman-Fried orchestrated a years-long fraud“ dating back to the creation of FTX, while the CFTC alleges that customer deposits at FTX were „appropriated by Alameda for its own use“ throughout the relevant period. Both agencies allege various financial crimes including conspiracy to commit wire fraud, securities fraud, commodities fraud, money laundering and campaign finance violations.
Motion To Stay Requested by US Attorney
Damian Williams, U.S. attorney for the Southern District of New York filed a motion to stay this week in order to prevent any „judicial overlap“ between the civil and criminal proceedings against Bankman-Fried as well as ensure that any outcomes from his criminal trial will have a significant impact on both lawsuits. The New York judge presiding over Bankman-Fried’s case has agreed to defer both cases until after his criminal trial is complete.
Criminal Charges Against Former FTX CEO
Bankman-Fried has been indicted by a federal grand jury in New York after his arrest on eight financial crimes ranging from conspiracy to commit wire fraud and securities fraud to money laundering and campaign finance violations related to alleged activities at FTX since its creation several years ago when he was CEO there..
The outcome of Sam Bankman-Fried’s criminal case may significantly impact not only his future but also how both civil lawsuits brought by the SEC and CFTC play out over time once they are resumed following completion of his Manhattan trial scheduled for October 3rd next year..