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Two civil lawsuits, stemming from the U.S. Securities and Trade Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC), towards former FTX CEO Sam Bankman-Fried can be paused till his prison proceedings are full.
US Lawyer Requests Pause on SEC and CFTC Lawsuits to Stop ‘Judicial Overlap’
Based on the newest determination by a New York choose presiding over the prison case of Sam Bankman-Fried, the co-founder of FTX, the 2 lawsuits filed by the highest two monetary regulators within the U.S. can be placed on maintain. Bankman-Fried was indicted by a federal grand jury in New York after his arrest, and the SEC and CFTC additionally filed prices towards the previous FTX CEO. The SEC complaint alleges that “Bankman-Fried orchestrated a years-long fraud” relationship again to the creation of FTX.
The CFTC alleges that buyer deposits at FTX, together with each fiat currencies and cryptocurrencies, have been “appropriated by Alameda for its personal use” all through the related interval. This week, Damian Williams, the U.S. lawyer for the Southern District of New York, filed a movement to remain and requested the federal government entities to pause the lawsuits till the prison case is settled. Williams argued that pausing the 2 circumstances would stop “judicial overlap” and that the prison case in Manhattan would have a “vital affect” on each lawsuits.
The New York choose deferred the SEC and CFTC circumstances till the trial in Manhattan concludes. Bankman-Fried’s trial in Manhattan is scheduled to start on Oct. 3, 2023. The FTX co-founder is charged with eight financial crimes, together with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit cash laundering, and conspiracy to defraud the Federal Election Fee and commit marketing campaign finance violations.
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