Sam Bankman-Fried, the disgraced founding father of collapsed crypto trade FTX, is taking his case to the 2nd US Circuit Court docket of Appeals in New York, arguing that he by no means obtained a good trial.
Based on Bloomberg, his authorized workforce claims the previous crypto billionaire was “presumed responsible” from the beginning, dealing with bias from prosecutors, the press, and critically, the presiding choose.
The 33-year-old was convicted in 2023 on seven legal counts, together with fraud and conspiracy, receiving a 25-year jail sentence for his function in what prosecutors described as one of many largest monetary frauds in historical past.
Bankman-Fried is now serving time in California and is in search of to overturn each his conviction and the $11 billion restitution order by way of his high-powered appeals legal professional, Alexandra Shapiro.
Choose Bias at Middle of Attraction Arguments
Bankman-Fried’s protection workforce has targeted closely on alleged misconduct by US District Choose Lewis Kaplan, who presided over the unique trial. Based on the attraction transient, Kaplan “repeatedly put a thumb on the dimensions to assist the federal government and thwart the protection.”
The attorneys declare the choose pressured jurors into reaching a fast verdict by suggesting they may work late, providing free dinner and automotive service residence, actions they argue compromised deliberations.
The protection additionally alleges Choose Kaplan “frequently ridiculed Bankman-Fried, criticized his demeanor, and signaled his disbelief” of the defendant’s testimony.
Notably, when Bankman-Fried claimed he didn’t run his sister hedge fund, Alameda Analysis, after stepping down as CEO, Kaplan allegedly referred to as the testimony “a joke.” The authorized workforce is requesting an entire retrial with a unique choose.
FTX Solvency Claims Gasoline Controversy
Including gasoline to the attraction, Bankman-Fried’s workforce launched paperwork in October claiming FTX held roughly $136 billion in petition-date property and “was by no means bancrupt.”
The submitting revealed substantial holdings, together with $14.3 billion in Anthropic fairness, $7.6 billion in Robinhood inventory, and vital crypto positions.
- 58 million SOL ($12.4 billion)
- 205,000 BTC ($2.3 billion)
- 112,600 ETH ($500 million).
His attorneys argue that roughly 98% of collectors have been repaid at 120% of their claims, with projections exhibiting all clients will obtain between 119% and 143% compensation.
📢 SBF workforce says, “FTX Was By no means Bankrupt” ❌
Collectors obtain 120% compensation
Learn to know what comes subsequent ⤵️https://t.co/R6glq3inh5
— CoinGape (@CoinGapeMedia) October 31, 2025
They contend Bankman-Fried confronted merely a liquidity disaster, not insolvency, and that the state of affairs “was on monitor to be resolved” earlier than FTX’s exterior counsel seized management.
Nonetheless, the crypto neighborhood has firmly rejected these claims.
Key Testimony and Pardon Hypothesis
Through the unique trial, three former FTX executives testified towards Bankman-Fried after pleading responsible to felony expenses: co-founder Gary Wang, engineering chief Nishad Singh, and Alameda CEO Caroline Ellison, who was additionally Bankman-Fried’s former girlfriend.
Ellison’s testimony proved significantly damaging, because it described how she ready seven “various stability sheets” at Bankman-Fried’s course to hide that $10 billion had been borrowed from FTX clients.
The attraction additionally challenges Choose Kaplan’s resolution to dam testimony that FTX had enough property to repay clients, whereas permitting prosecutors to say Bankman-Fried stole billions.
Moreover, Shapiro argues that the choose improperly prevented Bankman-Fried from testifying that he adopted the recommendation of FTX attorneys in good religion.
Reviews recommend Bankman-Fried’s mother and father have explored securing a presidential pardon from Donald Trump, although the crypto neighborhood has strongly opposed any clemency.
Following Trump’s current pardon of Binance founder CZ, hypothesis intensified regardless of widespread calls to maintain the FTX founder imprisoned.
