SBF Appeals Fraud Conviction, Claims Unfair Trial

Sam Bankman-Fried, the convicted founder of FTX, has filed an appeal to overturn his fraud and conspiracy conviction, claiming the trial was unfair. His legal team argues that the judge's bias and key evidence restrictions affected the outcome, calling for a new trial.

SBF's Defense: Trial Was Biased

On September 13, 2024, Bankman-Fried's legal team, led by Alexandra Shapiro, submitted a 102-page appeal. The document alleges that SBF’s trial was unfair from the start. According to the defense, he was presumed guilty long before the trial began, influencing the court's proceedings.

The lawyers accuse US District Judge Lewis Kaplan of showing clear bias against SBF, claiming the judge’s comments during the trial suggested guilt before the case had been fully presented. The defense criticized the judge for restricting evidence that could have supported SBF's actions to save FTX from collapse.

“Sam Bankman-Fried was never presumed innocent. He was presumed guilty — by the media, the FTX estate, federal prosecutors, and the judge overseeing his trial,” the defense argued, emphasizing that the trial was rushed and biased from the beginning.

Accusations Against FTX Bankruptcy Lawyers

Bankman-Fried’s defense also points to the role of Sullivan & Cromwell (S&C), FTX’s bankruptcy law firm, in the case. The lawyers claim that S&C unfairly pressured SBF to resign as CEO, and later worked to place all blame on him to shield themselves from scrutiny.

According to the appeal, S&C performed roles that went beyond their bankruptcy duties and involved prosecutorial tasks, raising questions about their motives. SBF's legal team argues that S&C aimed to distract attention from their own potential misconduct and hefty legal fees by making Bankman-Fried the scapegoat.

The defense further contends that FTX was not insolvent at the time of its collapse, and that assets existed to repay customers. However, the jury was not presented with this information, and instead, the prosecution portrayed the funds as lost due to SBF's actions.

Request for a New Trial

SBF’s legal team is calling for a new trial, arguing that the initial process was flawed. They are requesting a new judge, one who is impartial and willing to consider all evidence. They argue that the jury in the original trial only saw “half the picture” regarding FTX user funds, with the prosecution allegedly distorting facts to paint SBF as intentionally responsible for the losses. The defense maintains that SBF’s efforts to save FTX were ignored in court.

A Long Legal Battle Ahead

Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy, receiving a 25-year prison sentence. Additionally, he was ordered to forfeit $11 billion for defrauding FTX customers, investors, and Alameda Research lenders.

His appeal represents the latest development in the ongoing legal battle surrounding FTX’s collapse. If successful, a new trial could give SBF another chance to defend his actions, but for now, he remains convicted of fraud and faces years in prison. In their filing, Bankman-Fried's lawyers argue that a different judge could ensure a fair trial, one that considers all evidence and doesn't pre-judge the case.