Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, was convicted because of a “false narrative” told by federal prosecutors at a trial “tainted” by errors, his attorneys argued in a new court filing Friday to a federal appeals court.
“Fair trial principles were swept away in a ‘Sentence first-verdict afterwards’ tsunami, as everyone rushed to judgment following FTX’s collapse,” defense attorneys wrote in the appeal. “Sam Bankman-Fried was never presumed innocent. He was presumed guilty—before he was even charged.”
Bankman-Fried was found guilty of fraud, conspiracy and money laundering last November after federal prosecutors in New York accused him of orchestrating a scheme that collapsed the crypto-exchange he founded, FTX, and stole $8 billion in customer funds.
He is serving a 25-year prison sentence, which his attorneys called “draconian.”
In Friday’s appeal, defense attorney Alexandra Shapiro attacked the trial judge, Lewis Kaplan, and the U.S. Attorney’s Office for the Southern District of New York, accusing them of lacking objectivity or even-handedness.
“He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial,” the appeal said.
FTX founder Sam Bankman-Fried leaves Manhattan federal court, June 15, 2023, in New York.
Bebeto Matthews/AP, FILE
The U.S. Attorney’s Office declined to comment, but will submit a written reply brief.
The defense asked for a reversal of Bankman-Fried’s conviction and a new trial before a different judge.
Former Alameda Research CEO Caroline Ellison, Bankman-Fried’s ex-girlfriend and a blockbuster witness for the prosecution, is set to be sentenced for her role in the fraud later this month.
Sam Bankman-Fried, the co-founder and CEO of FTX, a popular cryptocurrency exchange, is currently appealing a fraud conviction related to the collapse of the platform. The case has sent shockwaves through the cryptocurrency community and raised questions about the regulation and oversight of digital asset exchanges.
The charges against Bankman-Fried stem from allegations that he knowingly misled investors about the financial health of FTX, leading to significant losses for those who had invested in the platform. The collapse of FTX in 2021 left many users unable to access their funds, sparking outrage and legal action against Bankman-Fried and other executives.
Bankman-Fried has maintained his innocence throughout the legal proceedings, claiming that he was not aware of any wrongdoing within the company. He has also argued that he took swift action to address the issues once they came to light, including cooperating with authorities and implementing new security measures to prevent similar incidents in the future.
The appeal process is expected to be lengthy and complex, as both sides present their evidence and arguments before a judge. The outcome of the appeal could have far-reaching implications for the cryptocurrency industry, as it may set a precedent for how exchanges are regulated and held accountable for their actions.
In the meantime, investors and users of FTX are left in limbo, unsure of whether they will ever be able to recover their lost funds. The case serves as a cautionary tale for those involved in the cryptocurrency market, highlighting the importance of due diligence and transparency when dealing with digital assets.
As the appeal process unfolds, all eyes will be on Sam Bankman-Fried and FTX, as the outcome of the case could have a significant impact on the future of the cryptocurrency industry. Only time will tell whether justice will be served and restitution made to those affected by the collapse of FTX.
