Former FTX CEO Sam Bankman-Fried has filed an appeal challenging his conviction on seven felony counts and a 25-year prison sentence. In a 102-page brief filed with the U.S. Court of Appeals for the Second Circuit, Bankman-Fried’s lawyers argue that he was “never presumed innocent” and that the jury received incomplete information about FTX user funds.
The appeal claims prosecutors presented a false narrative that FTX user funds were permanently lost and Bankman-Fried intentionally caused that loss. However, the lawyers allege that nearly two years later, it’s clear FTX was never insolvent and had billions in assets to repay customers.
“As explained in this brief, many of the judge’s rulings were not just erroneous but unbalanced – repeatedly putting a thumb on the scale to help the government and thwart the defense,” His defense counsel said.
“But that is not all. The judge continually ridiculed Bankman-Fried during trial, repeatedly criticized his demeanor, and signaled his disbelief of Bankman-Fried’s testimony.”
Bankman-Fried’s legal team requested the appellate court grant him a new trial with a different judge, arguing the presumption of guilt was established by the judge overseeing his original trial. They claim the judge made multiple decisions that restricted Bankman-Fried’s ability to present evidence and negatively impacted his defense strategy.
The U.S. Attorney’s Office for the Southern District of New York, which prosecuted the case, indicated they do not intend to comment on the appeal. Challenging a federal conviction is typically very difficult, but Bankman-Fried has consistently proclaimed his innocence since prosecutors accused him of fraud shortly after FTX’s collapse in November 2022.
FTX was a cryptocurrency exchange founded in 2019 by Sam Bankman-Fried (SBF). It became one of the biggest platforms for buying and selling cryptocurrencies and quickly grew in popularity. SBF became a well-known figure in the crypto world, and FTX attracted a lot of investors.
In late 2022, things began to unravel for FTX. Reports surfaced that FTX was mismanaging funds, using customer money for risky bets through Alameda Research, a company also owned by SBF. When customers attempted to withdraw their money from FTX, they found the company lacked sufficient funds to fulfill the requests.
This financial mismanagement led to a collapse, resulting in FTX declaring bankruptcy. Many individuals lost their money, and the company’s downfall sent shockwaves through the entire crypto industry.
SBF was subsequently arrested and charged with fraud for misleading customers and investors. He is accused of lying about how FTX was handling money and taking significant risks with customer funds without their knowledge. As investigations continue into the fiasco at FTX, SBF remains jailed.
Bankman-Fried is currently serving a 25-year sentence at the Metropolitan Detention Center in Brooklyn, where he has been detained since just before his trial last year.
