SEC and CFTC's Lawsuits against Sam Bankman-Fried Put on Hold by U.S. Judge – Here's Why

cryptonews.com:

A New York judge has put cases against the former FTX CEO brought by the Securities and Exchange Commission and the Commodity Futures Trading Commission on hold until the criminal cases against him are concluded.

On Monday, U.S. District Judge Kevin Castel in Manhattan granted a motion to push back the civil lawsuits filed by the SEC and the CFTC, arguing that the outcome of the criminal case would likely affect what issues remained in the civil cases, according to a report by Reuters. 

Prosecutors also claimed that Bankman-Fried "could gather evidence in the civil cases to improperly impeach government witnesses, circumvent discovery rules in criminal cases, and tailor his criminal defense," the report said. 

Damian Williams, U.S. Attorney for the Southern District of New York, filed the motion to hold off on civil proceedings until the Justice Department’s case against the former CEO is complete last week. 

FTX and its group of crypto companies filed for Chapter 11 bankruptcy in early November. Sam Bankman-Fried, the disgraced founder of FTX, was later arrested in The Bahamas after US prosecutors formally filed criminal charges against him. He was eventually extradited to the US, where he was released from jail after posting a $250m bond in a New York court.

The DOJ has filed eight criminal charges, including wire fraud, money laundering, securities fraud, commodities fraud, and conspiracy to violate campaign finance laws against the disgraced crypto boss. 

The Commodity Futures Trading Commission also charged SBF with civil charges for fraud and said Bankman-Fried, FTX, and Alameda Research caused the loss of over $8 billion in customer deposits. The Securities and Exchange Commission has brought similar charges. 

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