Sam Bankman-Fried Appeals Fraud Conviction, Claims Unfair Trial

Sam Bankman-Fried, the former CEO and co-founder of FTX currently serving a prison sentence, has filed an appeal seeking to overturn his fraud conviction, according to court documents submitted on Friday.

Bankman-Fried’s legal team argues that he was denied a fair trial and should be retried with a new judge. They contend that he was unfairly deemed guilty by the media, the FTX debtor estate, federal prosecutors, and the judge overseeing his trial before formal charges were even brought.

Attorneys Alexandra A.E. Sapiro, Theodore Sampsell-Jones, and Jason A. Driscoll argue that FTX was not insolvent and had the financial means to repay its customers despite facing a liquidity crisis. They claim that the legal advisors appointed to manage FTX during its financial difficulties mishandled the situation, contributing to the company’s downfall and financial losses.

The defense asserts that Bankman-Fried never had the opportunity to present evidence showing that he had the resources to settle customer debts, despite having investments that were not immediately liquid. They argue that the issues FTX faced were related to liquidity, not insolvency, and that Bankman-Fried did not engage in theft or reckless investment.

FTX, once a leading cryptocurrency exchange, collapsed in November 2022 due to a severe liquidity crunch that exposed significant fraud and mismanagement. Following his arrest and subsequent trial, Bankman-Fried was convicted of fraud last November and sentenced to 25 years in prison. The collapse of FTX was exacerbated by the misuse of customer funds for high-risk investments through the sister firm, Alameda Research.