Bankman-Fried Appeals Verdict

After being found guilty of fraud and conspiracy in November, Sam Bankman-Fried, former CEO of the now-defunct crypto exchange FTX, has appealed and sought a fresh trial.

His legal team contends that Lewis Kaplan, the presiding judge, was biased and that the case narrative was mainly against him.

Currently serving a 25-year jail sentence, Bankman-Fried argues he did not act illegally and that the evidence offered during the trial was unfairly constrained.

Bankman-Fried's lawyers, in their appeal to the 2nd US Circuit Court of Appeals, said Judge Kaplan was favoring the prosecution and, as a result, compromising the fairness of the trial.

They even called it a "sentence first, verdict afterward"-type scenario, where the judge rushed the jury toward a verdict without allowing ample time to consider the facts carefully.

The defense attorneys, however, argue that Kaplan worked to create a prejudicial atmosphere that warped the jury's perspective, at times criticizing defense counsel and exhibiting incredulity toward the testimony of Sam Bankman-Fried.

"The judge rushed the jury toward a verdict without allowing ample time for careful consideration of the facts," the appeal stated.

The appeal further emphasizes how the narrative of Bankman-Fried's activities has evolved since the trial. His legal team asserts that evidence suggests that FTX was not insolvent at its collapse and had substantial assets available to repay customers.

They contend that insufficient thought was given to this new material during the trial, which resulted in an unfair conviction based on a "false narrative" portraying Bankman-Fried as a thief.

The Collapse of FTX

The collapse of FTX in late 2022 rocked the crypto market, resulting in a surge of consumer withdrawals that led to the company's insolvency.

Prosecutors charged Bankman-Fried with planning a scheme to steal billions of dollars from consumer accounts to cover ostentatious political donations and personal spending.

Following a month-long trial that attracted public interest, the jury decided he was guilty of several offenses, including fraud and money laundering.

Comparisons have been drawn between his case and some of the biggest financial frauds in American history. Key witnesses at the prosecution's trial included former associates who had turned against him, including Caroline Ellison, ex-chief executive of Alameda Research.

Lasting Repercussions

The repercussions from FTX's bankruptcy are still significant as the court battles continue; continuous litigation and regulatory scrutiny influence the entire crypto scene.

The appeal procedure is supposed to be drawn out and complicated. Bankman-Fried's legal team is advocating a retrial with another judge, arguing that the initial trial was essentially defective.

Overturning a federal conviction is famously tough, but historical records reveal that less than 10% of such appeals are granted.