TL;DR
- Sam Bankman-Fried has requested a new trial before a U.S. federal appeals court following his 2023 conviction on seven fraud charges.
- The defense argues that the original trial was unfair because key evidence was blocked, which could have shown that SBF acted relying on legal advice and that FTX was solvent.
- Experts indicate that the chances of a successful appeal are low; if it fails, Bankman-Fried’s family could pursue a presidential pardon.
Sam Bankman-Fried, the founder of the FTX exchange, has requested a new trial before a U.S. federal appeals court after being convicted in 2023 on seven criminal counts of fraud and conspiracy.
A Manhattan jury found that SBF had misappropriated $8 billion from FTX customers in what prosecutors described as a “fraud of epic proportions.” He is currently serving a 25-year sentence at a low-security prison near Los Angeles, with a projected release date in 2044.
Arguments from Sam Bankman-Fried’s Defense
SBF’s attorneys maintain that the trial was unfair. They claim that the trial judge, Lewis Kaplan, blocked key evidence that could have supported Bankman-Fried’s defense, including proof that he relied on legal advice from his attorneys and that FTX had sufficient funds to cover customer withdrawals.
The defense argues that these restrictions prevented them from demonstrating that SBF’s decisions did not constitute intentional theft. Ahead of the hearing, Bankman-Fried himself submitted a 15-page document asserting that neither FTX nor his hedge fund Alameda Research were insolvent, and that customers could have recovered their funds following the 2022 liquidity crisis.
Experts say the odds of overturning the conviction are slim. District judges have broad discretion in managing trials, and for a retrial to be granted, the defense must show significant errors that deprived the defendant of a fair process. The tone and line of questioning from the appellate judges during the hearing may provide early clues about the likelihood of success.
The Presidential Pardon Option
If the appeal fails, Bankman-Fried’s family—both Stanford law professors—plans to push for a presidential pardon, although chances remain limited. SBF was a major political donor, contributing $5.2 million to Joe Biden’s 2020 campaign, a factor his family hopes could influence potential clemency.
The FTX case remains one of the largest financial frauds in crypto history, affecting investors, regulators, and severely damaging the reputation of the broader crypto ecosystem. The appeals court decision is expected in the coming months and will determine whether Sam Bankman-Fried gets a second opportunity to defend himself in a new trial
