According to Reuters, Manhattan federal prosecutors asked to pause the civil lawsuit against FTX founder Sam Bankman-Fried and three other former FTX executives until the end of the criminal trial.
Prosecutors said the entire civil lawsuit - which accuses former FTX insiders of defrauding customers - should be stayed. The criminal trial is scheduled to begin on October 3 with the participation of Bankman-Fried's former colleagues. Those who reached plea deals with the government appeared as key witnesses in the case.
The prosecutor emphasized that the civil charges overlap greatly with the government's criminal case. Allowing the civil lawsuit to proceed concurrently could interfere with the upcoming criminal trial.
In particular, the prosecutor made a request to suspend all proceedings against many other defendants in the civil case, including FTX's former law firm, former auditors, venture capitalists and others. Famous figures in sports, entertainment and social media receive payments as brand ambassadors for FTX.
Plaintiffs' attorneys involved in FTX's consolidated civil case showed no objection to the request for a stay. The move aims to ensure a fair and unhindered criminal trial process.
Prosecutors' proposal came after accusations that Bankman-Fried transferred $100 million in illegal money into the US political system to gain influence in Washington. The judge - who initially set bail at $250 million for Bankman-Fried - expressed concern about the former FTX CEO's behavior while under house arrest and decided to send SBF back to prison.
Sam Bankman-Fried pleaded not guilty to all charges charged by prosecutors, including conspiracy to commit fraud, money laundering and related charges.
Also Read:Sam Bankman-Fried goes to jail for falsifying evidence
Question of former FTX CEO related to PEPE 's collapse
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