US judge stops CFTC and SEC lawsuits against SBF until after the criminal proceedings
US judge stops CFTC and SEC lawsuits against SBF until after the criminal proceedings
The district judge of the United States, Kevin Castel, has granted the application of the Ministry of Justice, which are to be exposed to the Bankman-Fried (SBF), the founder and former CEO, submitted by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) against Sam Bankman-Fried (SBF) Crypto tour ftx.
according to Reuters Report The prosecutors consider a delay in complaints to make sense, since the outcome of the criminal proceedings could influence civil proceedings.
Court shifts civil proceedings against SBF
A suspension is a judicial order, a legal proceedings or the main hearing to be temporarily or indefinite. The court can abolish the suspension arrangement at a time that appears suitable for continuation of the legal dispute.
The criminal and civil lawsuits against SBF came according to FTX for voluntary insolvency protection according to chapter 11 in November after they had to fight with a serious liquidity crisis.
Shortly after the bankruptcy application, reports appeared on how SBF and its managers abused at the FTX trading company Alameda Research customer funds. They supposedly used the wealth of their customers to finance their luxury and buy personal property.
As a result, the SEC and the CFTC civil proceedings submitted for fraud against the FTX founder because of the sudden decline of his stock exchange. Last month Bankman-Fried did not guilty before the Federal Court of Manhattan because of criminal fraud because he knowingly cheated on investors.
The US district judge Lewis Kaplan set the process date on the first week of October and said the process could take four weeks. SBF is currently on a deposit of $ 250 million and could expect a maximum penalty of 115 years in prison in the event of a guilty verdict.
SBF is correct to suspend the arrangement for
The prosecutors applied last Tuesday that a judge postponed civil lawsuits against SBF until the conclusion of the criminal proceedings.
In the submission, the prosecutors feared that SBF could use evidence from the civil proceedings to complain about the government's witnesses and to avoid the investigative rules in criminal proceedings.
In particular SBF, the suspension arrangement for both civil proceedings together with the lawyer of the bankrupt real estate FTX and Alameda and their executives Gary Wang and Caroline Ellison.
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