SEC and CFTC Lawsuits Against Former FTX CEO Paused Until Criminal Proceedings Conclude

Two civil lawsuits filed by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) against former FTX CEO Sam Bankman-Fried will be suspended pending his criminal case.

U.S. Attorney Asks SEC, CFTC Suspend Suspended to Prevent ‘Judicial Duplication’

Two lawsuits filed by two of the top US financial regulators will be suspended in the latest ruling by a New York judge hearing the criminal case of FTX co-founder Sam Bankman-Freed. Bankman-Fried was indicted by a federal grand jury in New York following his arrest, and the SEC and CFTC also filed charges against the former FTX CEO. The SEC complaint alleges that “Bankman-Fried orchestrated years of fraud” beginning with the creation of FTX.

The CFTC claims that client deposits on FTX, including both fiat currencies and cryptocurrencies, were “appropriated for Alameda’s own use” during the relevant period. This week, U.S. Attorney for the Southern District of New York, Damian Williams, filed a motion to stay and asked government agencies to stay the trials until the criminal case is settled. Williams argued that the suspension of the two cases would prevent “judicial overlap” and that the Manhattan criminal case would have a “substantial impact” on both trials.

A New York judge has adjourned the SEC and CFTC cases until the end of the Manhattan trial. The Bankman-Freed trial in Manhattan is due to begin on October 3, 2023. FTX co-founder charged with eight financial crimesincluding conspiracy to commit wire fraud, wire fraud, conspiracy to commit merchandise fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commission of campaign finance violations.

What do you think the outcome will be for Sam Bankman-Fried and FTX? Let us know what you think about it in the comments section below.

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