Court delays regulators’ civil lawsuits against Sam Bankman-Fried

A court has paused two civil suits brought by regulators against FTX founder Sam Bankman-Fried until the criminal case against him by the U.S. Department of Justice is resolved. According to Reuters.

Judge Kevin Castel granted the Justice Department’s motion regarding the complaints from the SEC and the CFTC. Prosecutors said there is a reason to delay these proceedings, because ‘the outcome of the criminal case is likely to affect them’.

Law enforcement also noted that Bankman-Fried could use civil proceedings to gather evidence, compel witnesses, and circumvent disclosure rules.

The former FTX chief agreed to the stay of the civil cases.

Reuters noted that this is standard practice when there is a parallel criminal case.

Earlier, on 12 December 2022, Bahamian authorities arrested Bankman-Fried at the request of the U.S. government.

As part of the probe into the collapse of the exchange, U.S. prosecutors brought eight criminal charges against him. FTX founder has not pleaded guilty to the charges.

The court released him on $250 million bail.