US prosecutors request SEC and CFTC lawsuits against FTX founder Sam Bankman Fried be put off
- The prosecutors suggested prioritizing the criminal cases against Sam Bankman Fried over the civil fraud cases.
- District Judge Lewis Kaplan also rejected the FTX founder’s request to allow the use of communication platforms such as Facebook, Whatsapp, etc.
- Earlier this week, Judge Kaplan had barred the disgraced executive from using Signal as well as contacting any former or current FTX employee.
FTX co-founder Sam Bankman-Fried is facing legal troubles from every possible direction. The amount of charges against the individual has led the United States prosecutors to focus on one case at a time.
CFTC and SEC cases asked to be postponed
In a court filing on Tuesday, US prosecutors asked for the civil fraud cases against FTX’s former head Sam Bankman Fried to be put on hold for now. These cases are the ones being pursued by the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC).
Per the filing, the prosecutors requested that the criminal case against Sam Bankman-Fried be prioritized. This, according to the filing, will help in conserving resources and time as the ruling of the criminal case will decide what issues end up in dispute in the civil fraud cases.
This request was also consented to by Bankman-Fried himself, as well as by the counsel for FTX co-founder Gary Wang and Caroline Ellison. However, no confirmation regarding the same was given by the SEC or CFTC at the time of writing.
No communication for Sam Bankman-Fried
Following the filing of postponing CFTC and SEC cases, another ruling on Tuesday resulted in Sam Bankman-Fried’s request for bail terms modification being rejected. US District Judge Lewis Kaplan denied the motion filed by the FTX founder, which would have him the amendment his bail and cancellation of oral arguments set for this week.
Through this motion, Sam Bankman-Fried also requested to be allowed to use other communication platforms such as calling, Facebook, WhatsApp, etc. The former head of the bankrupt cryptocurrency exchange has already agreed not to use Signal.
This came after Judge Kaplan barred Bankman-Fried from using Signal and contacting any former or current employee from FTX. The decision came after the executive was deemed potentially dangerous, posing a material threat of inappropriate contact.