Sam Bankman Freed seeks new trial in FTX fraud case

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Lawyers for Sam Bankman Freed (SBF) will argue in the U.S. Court of Appeals that the FTX founder was denied a fair trial.

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Sam Bankman-Fried’s legal team will go to the Second Circuit Court of Appeals to argue that his FTX fraud conviction should be overturned.
The defense argues that the trial judge blocked evidence showing that FTX had sufficient assets to cover the withdrawals, which could have changed the jury’s verdict.
SBF maintains that FTX’s downfall was caused by mismanagement and panic, not intentional fraud.

Sam Bankman-Freed’s legal team will reportedly appear before the 2nd Circuit Court of Appeals on November 4 to argue that his conviction should be overturned. According to a recent Reuters report, the defense has argued that the judge unfairly blocked evidence showing that FTX had sufficient assets to meet customer withdrawals, a key issue that the defense contends could have influenced the jury’s decision.

Since being found guilty in November 2023 on seven counts of fraud and conspiracy, the 33-year-old has continued to deny any wrongdoing, insisting that FTX’s collapse was the result of mismanagement and market panic rather than intentional fraud.

Following his sentencing, the disgraced CEO’s lawyers stressed that he was “never presumed innocent” and argued that his trial was unfair and based on a false narrative that his clients’ funds were permanently lost. The appeal comes as the former FTX chief continues his efforts to reshape his role in the exchange’s collapse.

Inside SBF Appeals: Solvency, Manipulation Allegations, and Other Defense Tactics

Just a few days ago, Bankman Freed’s official X account posted a 15-page document titled “FTX: Where Did the Money Go?” reiterating his claim that FTX was never bankrupt. The report claimed that the exchange had sufficient assets at the time of its 2022 bankruptcy filing, including billions of dollars in cryptocurrencies and stakes in companies such as Anthropic, Robinhood, and SpaceX.

read more: SBF’s X account claims FTX is not bankrupt, causing temporary rise in FTT token

The document also reiterated claims that FTX’s Chapter 11 proceedings were manipulated by outside counsel and that valuable recovery efforts were ignored. SBF accused Sullivan & Cromwell and current CEO John Ray III of taking control of the exchange against its will and prioritizing legal costs over customer outcomes.

His defense appears to be relying on these arguments to support his appeal and explore the possibility of overturning the conviction. Still, the scale of FTX’s collapse, the largest in crypto history, weighs heavily on him. At the same time, damaging testimony from former executives including Caroline Ellison and Gary Wang has strengthened the prosecution’s case, making a reversal unlikely.

Meanwhile, the former CEO is also reportedly considering a possible pardon from US President Donald Trump, following the pardons of Silk Road founder Ross Ulbricht in January and, more recently, Binance CEO Zhao Changpeng, suggesting he is exploring different paths to freedom.

For now, SBF continues to serve a 25-year sentence. It remains to be seen whether his appeal and continued efforts will shorten his scheduled release date in 2044.

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