Sam Bankman-Fried Seeks New Trial Following FTX Fraud Conviction

Sam Bankman-Fried, the former CEO of FTX, has filed for a retrial after being sentenced to 25 years in prison for his involvement in one of the largest financial fraud cases in cryptocurrency history.

According to the New York Times, Bankman-Fried is appealing the November 2023 verdict, which found him guilty of defrauding investors of over $8 billion. His new attorney, Alexandra A.E. Shapiro, claims that U.S. District Judge Lewis Kaplan, who presided over the case, displayed bias against Bankman-Fried from the outset. In a detailed 102-page appeal, Shapiro argues that Judge Kaplan hindered her client’s defense by restricting critical evidence, and as a result, is requesting a new trial.

Once a crypto billionaire, Bankman-Fried has been serving his sentence in federal prison since his conviction last year. Throughout the legal process, the former FTX chief has maintained his innocence, asserting that he did not intentionally misappropriate customer funds or mislead investors about the company’s financial state.

Several former FTX executives who cooperated with authorities and struck plea deals, such as Caroline Ellison, former CEO of Alameda Research, and Ryan Salame, are also facing legal consequences. Ellison’s legal team is advocating for a supervised release, while Salame is embroiled in legal disputes with the Justice Department regarding campaign finance violations tied to his partner.

As FTX-related litigation continues nearly two years after the exchange’s collapse, multiple legal fronts remain active. Last month, a federal court approved a $12.7 billion settlement between FTX, its affiliate Alameda Research, and the Commodity Futures Trading Commission (CFTC). Meanwhile, the Securities and Exchange Commission (SEC) is reportedly considering legal action to block FTX’s proposal to repay creditors using stablecoins as part of its bankruptcy proceedings.

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