Last Updated: 14 February 2023
Civil cases against Sam Bankman-Fried, the former boss of FTX, may be postponed until after criminal proceedings are over. This was decided by a judge on Monday.
The CFTC and SEC’s civil cases against Sam Bankman-Fried have been postponed until after SBF's criminal trial in October. https://t.co/hGyAVqPY00
— Cointelegraph (@Cointelegraph) February 14, 2023
The civil case was brought by US regulators. It goes slightly differently from a lawsuit. The latter involves a judge, while a civil case involves a jury.
Damian Williams, the attorney for the Southern District of New York, filed a motion last week to postpone the civil suit until the Justice Department’s case against the former CEO is concluded.
Bankman-Fried is facing criminal charges. He faces a number of charges, including defrauding customers and violating financing laws.
The Commodity Futures Trading Commission (CFTC) also accuses him in civil fraud charges. Bankman-Fried’s companies, including FTX and Alameda Research, made losses of more than $8 billion. This came at the hands of customers because deposits had been tampered with.
SEC and CFTC
The Securities and Exchange Commission (SEC) filed similar charges. So today’s news is that both cases, from both the CFTC and also the SEC, will be postponed until the criminal case is concluded.
FTX fell over in November after Binance knocked over the first domino when it sold a bunch of FTT tokens. Meanwhile, FTX is in bankruptcy proceedings.
By the way, there are still a huge number of things running around FTX. For instance, the exchange wants to recover political donations, while the company where it got the bank accounts is now also under investigation. One wonders whether Silvergate could have prevented the malaise by noticing and raising the alarm about money flows between Alameda and FTX.