SEC Case Against Bankman-Fried Postponed Pending Criminal Trial
Charges can wait until the Department of Justice’s case against the FTX founder concludes, a judge said.
Feb 14, 2023 at 10:06 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/VP3VO42XHNHWVKN36TWQJMMYUM)
(Michael del Castillo/CoinDesk)
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The U.S. Securities and Exchange Commission’s case against FTX founder Sam Bankman-Fried will be put on hold until related charges brought by the Department of Justice are dealt with, a U.S. judge said in a Feb. 13 ruling.
U.S. prosecutors last week said a pause would save time and resources, as the DOJ case against Bankman-Fried will likely influence overlapping civil cases. The SEC said Bankman-Fried used customer funds for his lavish lifestyle.
On Tuesday, another civil case brought against the disgraced founder by the U.S. Commodity Futures Trading Commission was also delayed until after the criminal trial.
In December, Bankman-Fried was arrested following the collapse of FTX, and has pleaded not guilty to criminal charges brought against him by the DOJ, which include wire fraud and money laundering.
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Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.