FTX News: Sam Bankman-Fried’s 25-Year Sentence in Jeopardy After Appeal

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In the most notorious fraud ever in crypto history, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has officially appealed his fraud conviction, seeking a new trial on grounds of judicial bias. Convicted in November 2022 on seven counts of fraud and conspiracy related to FTX’s downfall, Bankman-Fried was sentenced to 25 years in prison in March 2023 by U.S. District Judge Lewis Kaplan. Now, Bankman-Fried’s defense team argues that Kaplan’s conduct during the trial unfairly influenced the jury as per a Bloomberg report.

Shocking many in the crypto space, SBF lawyers in a 102-page appeal filed with the Second Circuit Court of Appeals, Bankman-Fried’s new attorney, Alexandra Shapiro, claims that Kaplan’s comments during the trial were biased. Shapiro alleges that the judge made “biting comments” and “derisive remarks” that damaged Bankman-Fried’s credibility in front of the jury. According to Shapiro, “Sam Bankman-Fried was never presumed innocent” during the trial. She emphasized that Kaplan’s behavior towards the defense significantly influenced the trial’s outcome, making it impossible for Bankman-Fried to receive a fair hearing.

Claims of Procedural Errors

The appeal also highlights procedural errors, including Judge Kaplan’s blocking of key defense evidence. Bankman-Fried’s lawyers argue that the judge prevented them from presenting evidence of his investments in projects like Anthropic, which could have shown he still held valuable assets at the time of FTX’s collapse. Furthermore, the appeal claims that Kaplan unlawfully ordered asset forfeiture and denied Bankman-Fried access to “Brady material,” which refers to evidence that could have been favorable to his defense.

The defense team further accuses the Department of Justice (DOJ) of collaborating too closely with the FTX bankruptcy estate, which, they argue, blocked Bankman-Fried from accessing crucial evidence. They contend that the court refused to investigate whether the estate and its legal team acted as an “arm of the prosecution,” adding another layer of alleged unfairness.

Defense’s Argument for Financial Recovery

Throughout the trial, Bankman-Fried has maintained that FTX was not insolvent at the time of its bankruptcy filing. He claims that customers did not lose their money permanently, as the FTX estate has recovered substantial amounts since the bankruptcy proceedings began. However, the defense argues that Judge Kaplan blocked them from making this argument in court, thereby painting an incomplete picture for the jury.

Looking Ahead

Mainly, Bankman-Fried’s appeal hinges on these claims of judicial bias and procedural missteps. As the appeals process unfolds, it will determine whether the convicted FTX founder receives a new trial or serves his 25-year sentence.

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