Key Points
- Sam Bankman-Fried’s appeal criticizes the judge’s conduct during his fraud trial.
- On appeal, the client disputed the loss claim, arguing that he was entitled to recover the funds.
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Sam Bankman-Fried, founder of collapsed cryptocurrency exchange FTX, is appealing his fraud conviction and 25-year prison sentence, arguing judicial bias and improper restrictions on his defense.
The 102-page appeal, filed Friday by Bankman-Fried attorney Alexandra AE Shapiro, seeks a new trial and criticizes several rulings by U.S. District Judge Lewis A. Kaplan that reportedly limited the defendants’ ability to present evidence and defend themselves effectively.
“Sam Bankman-Fried was never presumed innocent,” Shapiro wrote in the filing. “He was presumed guilty by the judge who presided over his trial.”
The appeal challenges Judge Kaplan’s decision to block Bankman-Fried from claiming that FTX users did not actually lose money due to potential recovery through bankruptcy proceedings. Shapiro argues that the ruling allowed prosecutors to present a “false story” to the jury about permanent customer losses.
The appeal also criticizes Judge Kaplan for limiting Bankman-Fried’s ability to testify about her reliance on legal advice on certain business decisions being investigated by prosecutors. The filing also objects to the unusual pre-trial deposition ordered by the judge, describing it as an “unprecedented procedure” that gave prosecutors an unfair advantage.
“The government presented a false narrative that FTX’s customers, lenders, and investors permanently lost their money,” the appeal states. “The jury only saw half the picture.”
Bankman-Fried’s legal team argues that these and other rulings by Judge Kaplan created an unfair trial environment. The appeal not only asks for a new trial, but also asks that the trial be held before a different judge, citing prejudice over Kaplan’s courtroom conduct.
“The judge repeatedly made sharp remarks that undermined the defense,” Shapiro wrote. “He even ridiculed the defendant’s testimony during pretrial hearings and before the jury.”
The appeal also raises concerns about the role of Sullivan & Cromwell, the law firm that served as FTX’s outside counsel before becoming its lead bankruptcy attorney. Bankman-Fried’s team argues that the firm unfairly pushed for his resignation as CEO and essentially acted as an extension of the government by providing information to prosecutors.
Bankman-Fried, 32, was convicted by a federal jury in November of fraud, conspiracy and money laundering in connection with the FTX collapse. Prosecutors alleged he orchestrated a scheme to embezzle $8 billion in client funds. Judge Kaplan sentenced him to 25 years in prison in March.
The appeal represents the former crypto billionaire’s last-ditch effort to overturn his conviction. Federal appeals typically have a low chance of success. Bankman-Fried has consistently maintained his innocence since he was first charged after FTX collapsed in November 2022.
Damien Williams, a spokesman for the U.S. attorney who prosecuted the case, declined to comment on the appeal.
Caroline Ellison, the first of Bankman-Fried’s former associates to plead guilty and testify against him, is scheduled to be sentenced on September 24 after appealing her not guilty verdict. Ellison, who had an on-and-off romantic relationship with Bankman-Fried, was one of three FTX advisers who cooperated with prosecutors.
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