US Attorney for the Southern District of New York, Damian Williams, has filed a motion to stay the civil proceedings. A judge has granted his motion to have the civil proceedings against Sam Bankman-Fried of the CFTC and the SEC postponed. They will not resume until after the criminal trial of the former boss of FTX in October.
Suspension of civil proceedings against SBF granted
Damian Williams, U.S. Attorney for the Southern District of New York has requested a postponement of civil proceedings against SBF. This is a case that pits the Commodities Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) against Sam Bankman-Fried. The significant overlap between the cases of the CFTC, the SEC and the DOJ is the reason for this motion. This was filed on February 7.
On February 13, Manhattan District Judge Kevin Castel granted motions to stay civil proceedings “without prejudice.” This means that business does not resume until the end of the criminal trial of the Ministry of Justice. According to Mr. Williams, the evidence against SBF will likely be the same across all three cases. And the DOJ trial in October will have a “significant impact” on those civil cases, he stressed.
A rather legitimate decision
Failure to delay cases could also give SBF unfair advantages in the DOJ lawsuit. Indeed, according to Mr. Williams, Sam Bankman-Fried had the necessary tools to pull out of the game. He has the means to inappropriately obtain impeachment material concerning government witnesses. He would also be able to circumvent the rules of criminal discovery and inappropriately tailor his defense in the criminal case.
Bankman-Fried’s legal team did not oppose the prosecutor’s motion to postpone the proceedings. Additionally, Sam Bankman-Fried received a ban from using any encrypted messaging apps. On February 9, the federal court judge for the Southern District of New York extended the ban until February 21. This falls within the framework of the conditions for the release on bail of the former boss of FTX.
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