Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Sam Bankman-Fried, the convicted co-founder of collapsed crypto exchange FTX, has filed an appeal challenging his 25-year prison sentence.
His legal team argues he was “presumed guilty” from the outset and denied a fair trial due to judicial bias and public prejudice.
According to a Bloomberg report on Tuesday, Bankman-Fried’s attorneys submitted a filing to the U.S. Court of Appeals for the Second Circuit in New York, alleging their client’s conviction stemmed from a “rush to judgment” by prosecutors, the media, and U.S. District Judge Lewis Kaplan.
“Sam Bankman-Fried was never presumed innocent. He was presumed guilty—before he was even charged,” the defense stated.
The filing accuses Judge Kaplan of displaying bias during proceedings, claiming he “repeatedly ridiculed” the defense team and showed disbelief in Bankman-Fried’s testimony before the jury.
Sam Bankman-Fried Conviction and Appeal Strategy
Bankman-Fried was convicted in 2023 on seven counts of fraud and conspiracy related to the collapse of FTX and its trading affiliate, Alameda Research.
Prosecutors alleged he misappropriated over $8 billion in customer funds to cover losses, make political donations, and finance luxury real estate purchases.
Despite claiming he never intended to defraud anyone, jurors returned a guilty verdict after less than five hours of deliberation.
Leading the appeal is Alexandra Shapiro, a seasoned appellate attorney known for overturning high-profile white-collar convictions.
She recently won on behalf of Iconix Brand Group founder Neil Cole, who was cleared by the Second Circuit last week.
Shapiro plans to argue that Judge Kaplan unfairly limited Bankman-Fried’s ability to present evidence, including his claim that FTX had sufficient assets to repay customers and that his actions were guided by legal advice from company counsel.
The defense asserts Kaplan pressured jurors into a quick decision by offering to extend deliberations late into the evening with dinner provided.
They claim the judge’s remarks, including calling part of Bankman-Fried’s testimony “a joke“, compromised trial fairness. The appeal seeks to overturn his 25-year sentence and challenge the $11 billion restitution order.
His attorneys are requesting a new trial under a different judge.
Pardon Speculation
Reports earlier this year indicated SBF’s parents explored possible avenues for a presidential pardon from President Donald Trump.
In March, Bankman-Fried appeared on Tucker Carlson’s podcast, criticizing former SEC Chair Gary Gensler.
Last month, a post on his official X account alleged that “Biden’s anti-crypto SEC/DOJ went after him and arrested him in 2022 to prevent his testimony on Capitol Hill.
“They had me arrested weeks before the crypto bill I was working on was set for a vote—and the night before I was set to testify before Congress,” the post stated.
While Bankman-Fried’s legal team remains confident, legal experts suggest overturning a high-profile conviction of this nature remains uncertain.
Top crypto voices believe SBF is no Ross Ulbricht or Changpeng Zhao, and a pardon would send a dangerous message to bad actors.
Eliminating consequences less than a year after sentencing could embolden other entrepreneurs to prey on investors.
Impact of FTX Collapse on Victims
FTX’s collapse has had a profound impact on its victims. One creditor wrote ahead of SBF’s sentencing:
“My whole life has been destroyed. I have two young children, one born right before the collapse. Beyond the money, I lost my happiness, my ability to get out of bed, my desire to continue living. My wife is suicidal and depressed.”
Others described being brought to the brink of losing their homes, and how hard work to pull their families out of “generational poverty“ was undone when FTX abruptly halted withdrawals.
Bankman-Fried is currently serving his sentence in a federal facility in California and is not expected to appear at the appeal hearing.
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