Court Postpones Civil Proceedings Against SBF from CFTC and SEC

A US District Judge, Kevin Castel has granted permission to push forward Sam Bankman-Fried’s case from CFTC and SEC until the conclusion of his criminal trials.

Renowned US Attorney, Damian Williams filed the petition last week. William claims Bankman-Fried’s criminal prosecution would have an effect on his civil procedures with the CFTC and SEC. As a result, both civil suits should come after his criminal case, which is scheduled for October.

He went further to say that all the issues in both civil cases are the same in the criminal matter. Additionally, he said that failing to postpone the cases could give SBF unfair advantages in the DOJ’s trial. William claims Bankman-Fried had the capacity to unfairly gather evidence against the government’s witnesses, get around the criminal discovery rules, and improperly shape his defense in the criminal case.

William’s argument is predicated on the idea that Bankman-Fried was caught violating the conditions of his bail agreement. The former CEO was seen interfering with witness testimony, as evidenced by encrypted messages sent to one of the witnesses.

Sam Bankman-Fried Receives Lawsuit from CFTC and SEC

The United States Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both filed separate lawsuits against SBF following the collapse of the defunct FTX platform.

The CFTC stated in its submission that Bankman-Fried had made false claims about the viability of his businesses and how he used customer cash. The agency added that such claims had impacted the pricing of Bitcoin (BTC) and Ether (ETH).

Further, CFTC asserted that Bankman-Fried’s public comments regarding earnings were at odds with what the business actually noticed. The filing revealed that SBF allegedly wrote a document in September that was never made public and said Alameda should be permanently closed down since it did not bring in enough money through trade.

The SEC, on the other hand, charged SBF for defrauding customers in the defunct FTX exchange. The SEC claims that Bankman-Fried misled investors by misrepresenting his firm.

Meanwhile, Bankman-Fried said he did not steal investors’ funds when he made his first statement after the demise of his firm.