Highlights:
- Sam Bankman-Fried appeals his fraud conviction and 25-year sentence, citing bias.
- His team argues procedural errors and unfair trial handling by Judge Kaplan.
- The appeal challenges FTX’s financial narrative and seeks a new trial for SBF.
Sam Bankman-Fried (SBF), the co-founder of the collapsed crypto exchange FTX, has appealed his fraud conviction and 25-year prison sentence. The 102-page appeal, submitted to the Second Circuit Court of Appeals on Sept. 13 by Bankman-Fried’s attorney, Alexandra A.E. Shapiro, requests a new trial and criticizes multiple rulings by US District Judge Lewis A. Kaplan. The appeal claims these rulings limited the defendant’s ability to present evidence and build a strong defence.
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Former FTX CEO Sam Bankman-Fried has filed an appeal for a new trial. His lawyer accused Judge Lewis Kaplan of showing bias in the trial and preventing the submission of key evidence. SBF was previously convicted of defrauding FTX customers and investors and sentenced to 25 years…
— Wu Blockchain (@WuBlockchain) September 14, 2024
Appeal Claims Bias and Procedural Errors in SBF’s Sentence
In November 2023, a New York jury found Bankman-Fried guilty of all seven criminal charges related to defrauding FTX’s customers, lenders, and investors. Prosecutors described Bankman-Fried’s actions as “likely the largest fraud in the last decade,” drawing comparisons to Ponzi scheme orchestrator Bernie Madoff. In March, US District Judge Lewis Kaplan sentenced SBF to 25 years in prison.
Breaking news: Sam Bankman-Fried has been sentenced to 25 years in prison over his role in the collapse of his FTX cryptocurrency exchange https://t.co/qMae22Ij9k pic.twitter.com/Ou4HIF6sEg
— Financial Times (@FT) March 28, 2024
SBF’s new legal team, led by attorney Alexandra Shapiro, now argues that Kaplan’s handling of the case was biased and unfairly influenced the outcome. In the appeal, Shapiro alleged that Judge Kaplan made biased remarks before the jury, presenting SBF as guilty before the trial ended.
The defence also criticized Kaplan for limiting crucial arguments, including evidence about SBF’s investments that could have demonstrated his efforts to stabilize the company. The appeal also highlighted procedural issues, including claims that SBF was denied access to exculpatory evidence or Brady material, which could have supported his defence.
Further, Bankman-Fried’s lawyer said:
“He was presumed guilty — before he was even charged. He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial.”
SBF’s Appeal Challenges Financial Narrative, Testimonies, and Seeks New Trial
SBF’s defence argues that FTX’s financial issues were not as severe as claimed and that customers could recover their funds through bankruptcy. His legal team contends that the court unfairly prevented this argument from reaching the jury, resulting in an incomplete view of the company’s financial situation.
Moreover, the appeal claims that from the beginning, the dominant story—initially spun by the lawyers who took over FTX and swiftly embraced by their contacts at the US Attorney’s Office—was that Bankman-Fried had stolen billions of customer funds, led FTX to insolvency, and caused significant losses. However, nearly two years later, a different picture emerged, showing that FTX was not insolvent and had billions in assets to repay customers. This evidence, the appeal argues, was never presented to the jury.
The appeal also emphasized testimonies from SBF’s former associates, such as Caroline Ellison and Gary Wang, who cooperated with prosecutors after pleading guilty to fraud. These testimonies played a crucial role in the prosecution’s case against the FTX founder.
SBF’s defence initially sought a reduced sentence, claiming he had no criminal intent and FTX’s collapse resulted from market conditions and mismanagement, not deliberate fraud. Now, his latest appeal aims to overturn the conviction completely and secure a new trial.
As the appeal process starts, SBF remains in custody, serving his sentence. The appeal’s outcome could significantly impact his future and influence the broader repercussions of FTX’s collapse, a key event in the crypto industry’s history.
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