Sam Bankman-Fried demands new trial over FTX fraud verdict

As a seasoned researcher with years of immersion in the complex world of finance and law, I find myself constantly intrigued by the intricate tapestry of events unfolding around the FTX saga. The latest development – Sam Bankman-Fried’s appeal against his 25-year sentence – is yet another fascinating twist in this captivating narrative.


Previously held FTX CEO, Sam Bankman-Fried, has contested the 25-year imprisonment term handed down after his trial that took place over a span of five weeks at the end of last year.

As reported by The New York Times, Sam Bankman-Fried is challenging a decision made in a court case from November 2023, where he was declared guilty of swindling investors out of approximately $8 billion as the founder of FTX.

In their 102-page legal submission, Alexandra A.E. Shapiro, Bankman-Fried’s newest attorney, contends that the presiding judge, Judge Kaplan, appeared to view Bankman-Fried as guilty from the outset. The request for a fresh trial is based on allegations that Judge Kaplan restricted Bankman-Fried’s defense and narrowed the evidence presented.

Since the previous year, Sam Bankman-Fried, formerly a prominent figure in the cryptocurrency world and billionaire, is currently serving a 25-year term in a federal correctional institution.

After his trial in Manhattan, FTX’s ex-CEO has continued to uphold an air of innocence, consistently asserting that he had no intention to divert billions of customers’ funds nor hide the company’s financial status from investors and regulatory bodies.

Similarly to Caroline Ellison, the former CEO of Alameda, and Ryan Salame, other FTX executives who have agreed to plea deals are also at risk of serving jail time. Ellison’s legal team has advocated for supervised release, while Salame has had disagreements with prosecutors from the Justice Department regarding campaign finance investigations involving his partner.

Over the past two years since FTX’s downfall, legal actions concerning this matter are progressing in various directions. Last month, a court-sanctioned settlement agreement worth $12.7 billion was reached between the defunct exchange, its affiliate Alameda, and the Commodity Futures Trading Commission.

Additionally, the Securities and Exchange Commission expressed that they might challenge FTX’s strategy to reimburse creditors with stablecoins during their bankruptcy hearings.

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2024-09-13 23:10