Sam Bankman-Fried demands new trial over FTX fraud verdict

Former FTX CEO Sam Bankman-Fried has challenged his 25-year sentence following his five-week trial late last year.

According to the New York Times, Bankman-Fried appealed a November 2023 court ruling that found the FTX founder guilty of defrauding investors of over $8 billion.

His new lawyer, Alexandra A.E. Shapiro, argued that Judge Kaplan, the presiding judge, presumed Bankman-Fried guilty from the start. The 102-page filing requested a new trial, claiming Judge Kaplan hindered Bankman-Fried’s defense and limited evidence.

Once a crypto mogul and billionaire, Bankman-Fried has been serving a 25-year sentence in a federal prison facility since last year. 

Since his trial in Manhattan, FTX’s former CEO has maintained a semblance of innocence, insisting he never intended to siphon billions of customer funds or conceal the firm’s financial health from investors and regulators.

Other FTX executives who signed plea deals, like former Alameda CEO Caroline Ellison and Ryan Salame, also face prison time. Ellison’s lawyers pushed for a supervised release while Salame tussled with Justice Department prosecutors over campaign finance probes on his partner.

Nearly two years after FTX’s collapse, related litigation is advancing on multiple fronts. The defunct exchange, its sister company Alameda, and the Commodity Futures Trading Commission reached a court-approved $12.7 billion settlement agreement last month.

The Securities and Exchange Commission also indicated it may contest FTX’s plans to repay creditors using stablecoins in its bankruptcy proceedings.