Critical Development in FTX Case: Unexpected Move by Sam Bankman-Fried

Sam Bankman-Fried, the controversial founder of defunct cryptocurrency exchange FTX, has requested a new trial, appealing his conviction on fraud charges.

In a 102-page brief filed Friday, Bankman-Fried's legal team argued that U.S. District Judge Lewis A. Kaplan, who is overseeing the case, made rulings that weakened her defense and tipped the scales of justice against her.

The appeal, written by attorney Alexandra A. E. Shapiro, alleges that Judge Kaplan violated Bankman-Fried’s right to a fair trial by restricting her ability to present key evidence. “Sam Bankman-Fried was never presumed innocent,” Shapiro said in the document, and argued that the judge demonstrated clear bias and presided over the case with a presumption of guilt.

The lawsuit alleges that Bankman-Fried orchestrated a massive fraud scheme that siphoned off $8 billion from FTX customers before the company’s massive collapse in November 2022. Since then, Bankman-Fried has repeatedly claimed his innocence and maintained that the collapse was the result of mismanagement, not fraud.

While federal convictions are notoriously difficult to appeal, the legal team’s focus on Judge Kaplan’s rulings is an attempt to cast doubt on the fairness of the original trial. The U.S. Attorney’s Office for the Southern District of New York, led by Damian Williams, declined to comment on the appeal.

*This is not investment advice.