U.S. District Judge Kevin Castel in Manhattan granted a Justice
Department motion to stay the lawsuits filed by the Securities
and Exchange Commission and the Commodity Futures Trading
Commission.
Prosecutors said it made sense to delay those lawsuits because
the cases substantially overlapped, and the outcome of the
criminal case would likely affect what issues remained in the
civil cases.
They also cited the risk that Bankman-Fried could gather
evidence in the civil cases to improperly impeach government
witnesses, circumvent discovery rules in criminal cases, and
tailor his criminal defense.
Bankman-Fried consented to putting the civil cases on hold.
Stays of SEC and CFTC lawsuits are common when the Justice
Department files parallel criminal cases.
Bankman-Fried, 30, has been free on $250 million bond and living
in Palo Alto, California, with his parents since pleading not
guilty to looting billions of dollars from FTX. Another
Manhattan federal judge, Lewis Kaplan, oversees that case.
(Reporting by Jonathan Stempel in New York, editing by Deepa
Babington)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|