Former FTX chief CEO Sam Bankman-Fried has requested a federal court docket for a brand new trial on fraud costs, arguing that beforehand unavailable witness testimony may undermine the federal government’s case that led to his 25-year jail sentence.
In a movement filed Feb. 5 in Manhattan federal court docket, Bankman-Fried challenged his 2023 conviction, although the request is separate from his formal enchantment, as Bloomberg reported. Motions for a brand new trial face a excessive authorized bar and are not often granted.
The submitting was submitted to the court docket by Bankman-Fried’s mom, retired Stanford legislation professor Barbara Fried, and is now underneath assessment. Bloomberg described the trouble as an extended shot.
Nonetheless, the transfer retains the case energetic and highlights Bankman-Fried’s technique of contesting the decision on a number of fronts, even after the fallout of FTX’s collapse reverberated throughout the crypto business for years.
Bankman-Fried was convicted on seven prison counts tied to the misuse of buyer funds at FTX and its affiliated buying and selling firm, Alameda Analysis, in some of the consequential fraud circumstances in crypto’s historical past. Regardless of the conviction, Bankman-Fried has maintained his innocence.
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What the submitting argues, particularly
Within the movement, Bankman-Fried contends that testimony from former FTX executives Daniel Chapsky and Ryan Salame may problem the prosecution’s narrative concerning the firm’s monetary situation earlier than its collapse in November 2022.
Neither govt appeared at trial, although Salame pleaded responsible to marketing campaign finance and fraud-related costs. He’s at present serving a seven-and-a-half-year jail sentence.
Bankman-Fried additionally requested {that a} totally different choose assessment the movement, arguing that trial choose Lewis Kaplan confirmed “manifest prejudice” through the proceedings.
These claims echo earlier arguments raised in Bankman-Fried’s enchantment listening to, the place his lawyer stated Kaplan improperly barred the protection from telling jurors that enough funds have been obtainable to repay traders.
In the meantime, the FTX chapter property, the pool of remaining belongings overseen by court-appointed directors, continues to make progress in returning funds to affected prospects. The alternate is utilizing a phased compensation course of and distributed billions of {dollars} to collectors in 2025, with further payouts anticipated as asset recoveries and claims evaluations proceed.
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