1 year ago
U.S. prosecutors person asked that the fraud cases against FTX laminitis Sam Bankman-Fried not proceed until the decision of the government’s transgression lawsuit against him, according to court documents.
Damian Williams, the main authoritative overseeing the transgression lawsuit against Bankman-Fried, wrote that the Commodities Future Trading Commission and the Securities and Exchange Commission had some consented to the stay. Bankman-Fried, erstwhile Alameda Research CEO Caroline Ellison, and FTX co-founder Gary Wang person besides agreed to the stay, according to the tribunal filing.
According to a Tuesday tribunal filing, Damian Williams stated that the effect of the transgression lawsuit would astir apt substantially impact the civilian cases. He besides expressed interest that Bankman-Fried’s defence squad mightiness usage the find process successful the civilian lawsuit to fortify their ain defence successful the transgression case, noting successful Tuesday’s filing that the transgression lawsuit volition apt person a “significant impact” connected the civilian process and should thereby beryllium postponed.
“Allowing find successful the Civil Cases to proceed without regularisation risks giving the defendant, Samuel Bankman-Fried, the tools to improperly get impeachment worldly regarding the Government’s witnesses, circumvent the transgression find rules, and improperly tailor his defence successful the Criminal Case,” Williams wrote.
Such a determination is not wholly unprecedented. In July 2018, the SEC temporarily suspended its probe into the crypto fraudster Renwick Haddow arsenic some the civilian and transgression cases were recovered to beryllium based connected the aforesaid facts and circumstances.
On Dec. 13, the SEC formally charged Bankman-Fried for processing a program to swindle investors of FTX. Likewise, the Commodities Future Trading Commission, oregon CFTC, has besides accused Bankman-Fried of conducting 1 of the largest frauds successful American history, accusing him of allowing funds to travel from FTX to Alameda Research.
At 1 point, Bankman-Fried was 1 of the wealthiest men successful the world, having helmed 1 of the largest centralized crypto exchanges successful the world, helium had made it a constituent to cozy himself up to regulators successful the US and internationally, including respective radical from wrong the SEC itself.
The determination to postpone the civilian proceedings comes aft a apical SEC authoritative stepped down successful January. Following reports that Dan Berkovitz, General Counsel astatine the Securities and Exchange Commission, had respective arguable meetings with Bankman-Fried, it was announced successful December that Berkovitz would depart from his relation effectual Jan. 31.
In total, Bankman-Fried is facing 8 transgression charges, including ligament fraud and conspiring to launder money. He appeared successful the national tribunal successful Manhattan connected January 3rd, wherever helium pleaded not blameworthy to each 8 charges. The FTX laminitis is present awaiting a proceedings which is acceptable to instrumentality spot successful October.
The station US prosecutors question postponement of fraud charges by CFTC, SEC against SBF appeared archetypal connected CryptoSlate.
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