Sam Bankman-Fried Appeals Conviction, Seeks New Trial in FTX Fraud Case

Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, has filed an appeal challenging his fraud conviction and 25-year prison sentence. In a 102-page brief submitted to the U.S. Court of Appeals for the Second Circuit, Bankman-Fried’s legal team argues that he was denied a fair trial and calls for new proceedings under a different judge.

The appeal, filed nearly a year after Bankman-Fried’s conviction on seven felony counts, including wire fraud and money laundering conspiracy, criticizes the handling of the case by U.S. District Judge Lewis A. Kaplan. Alexandra Shapiro, Bankman-Fried’s appellate lawyer, claims that Judge Kaplan demonstrated bias against the defendant and made rulings that significantly hampered the defense’s ability to present key evidence.

One of the central arguments in the appeal is that the court prevented Bankman-Fried from introducing evidence suggesting that FTX and its sister company, Alameda Research, were solvent. The defense contends that this prohibition allowed prosecutors to present a “false narrative” about customer losses and the financial state of the companies.

“The jury was only allowed to see half the picture,” Shapiro wrote in the appeal. “The government thus presented a false narrative that FTX’s customers, lenders, and investors had permanently lost their money.”

The appeal also challenges the court’s decision to block Bankman-Fried from testifying about his reliance on legal advice for certain business decisions. This limitation, the defense argues, further restricted their ability to present a complete case to the jury.

Shapiro’s filing paints a picture of a defendant who was “presumed guilty” from the outset by various parties, including the media, the FTX bankruptcy estate, federal prosecutors, and Judge Kaplan himself. The appeal alleges that Judge Kaplan made “biting comments undermining the defense” and even derided Bankman-Fried’s testimony in front of the jury.

The defense team is seeking a new trial before a different judge, arguing that Judge Kaplan’s actions amounted to “putting a thumb on the scale to help the government.” They also claim that the judge improperly influenced the jury by offering incentives like free dinner and car service to reach a verdict quickly.

This appeal comes as the cryptocurrency industry continues to grapple with the fallout from FTX’s collapse in November 2022. The case has raised significant questions about regulation and oversight in the crypto space, as well as the responsibilities of exchange operators to their customers.

As the appellate process unfolds, the crypto community and legal observers will be watching closely to see how the Second Circuit Court of Appeals responds to these allegations of judicial bias and procedural errors. The outcome of this appeal could have far-reaching implications for future cryptocurrency-related fraud cases and the standards of evidence allowed in such trials.

While Bankman-Fried fights his conviction, other key figures in the FTX saga are facing their own legal challenges. Caroline Ellison, Bankman-Fried’s former girlfriend and CEO of Alameda Research, who testified against him during the trial, is awaiting sentencing. Her lawyers have requested that she be spared prison time in light of her cooperation with prosecutors.