The legal team representing Sam Bankman-Fried, the embattled founder of the collapsed cryptocurrency exchange FTX, has filed an appeal, arguing that their client was unfairly judged by the public and legal system before his trial even began. The appeal, submitted to the 2nd U.S. Circuit Court of Appeals on Friday, seeks to overturn Bankman-Fried’s conviction and secure a retrial under a different judge.
Bankman-Fried, once a prominent figure in the crypto world, was convicted in November 2023 of fraud and conspiracy charges. His conviction came a year after FTX, the cryptocurrency exchange he founded, filed for bankruptcy amid allegations of misused customer funds, resulting in billions of dollars in losses. His legal team, however, claims that the trial was marred by preconceived notions of guilt and a hurried verdict.
“Presumed Guilty Before He Was Even Charged”
In their appeal, the lawyers argue that Bankman-Fried’s right to a fair trial was compromised by the widespread assumption of his guilt before any formal charges were brought against him. “Sam Bankman-Fried was never presumed innocent. He was presumed guilty – before he was even charged,” the legal team wrote. They further asserted that the media, federal prosecutors, and the legal representatives of the FTX estate had all contributed to painting a premature and misleading picture of Bankman-Fried as a thief who had misappropriated billions from investors and customers.
They claim that the narrative of Bankman-Fried’s guilt was spun from the moment FTX collapsed, driven largely by the lawyers who took control of the estate and their connections with the U.S. Attorney’s Office. “The prevailing narrative initially spun by the lawyers who took over FTX, quickly adopted by their contacts at the U.S. Attorney’s Office, was that Bankman-Fried had stolen billions of dollars of customer funds, driven FTX to insolvency, and caused billions in losses,” the filing stated.
Calls for a Retrial
The appeal also criticizes the speed with which the jury reached its verdict, after just one day of deliberations following a complex four-week trial. The defense argues that the trial judge rushed the process, pressuring the jury to deliver a verdict in haste. Bankman-Fried’s lawyers referred to the sentence he received as “draconian,” emphasizing that their client, a first-time, non-violent offender, was unfairly sentenced to 25 years behind bars.
The legal team insists that the passing of time has begun to cast doubt on the initial portrayal of events, with new information allegedly showing that FTX was not insolvent at the time of its collapse. “Now, nearly two years later, a very different picture is emerging – one confirming FTX was never insolvent and, in fact, had assets worth billions to repay its customers,” the lawyers wrote. They contend that the jury was never presented with this evidence during Bankman-Fried’s trial, further undermining the fairness of the proceedings.
A Tarnished Legacy
At 32, Bankman-Fried’s fall from grace has been rapid and dramatic. Once hailed as a crypto wunderkind, he became one of the most high-profile figures in the cryptocurrency world. However, his fortunes changed when FTX collapsed in November 2022, triggering a wave of withdrawals by investors and customers. In the aftermath, a jury concluded that customer funds had been improperly used for various purposes, including real estate purchases, celebrity endorsements, political donations, and the luxurious lifestyles of those within the company.
As Bankman-Fried’s appeal moves forward, the legal team hopes to shift the narrative and convince the courts that their client did not commit the crimes of which he has been convicted. Whether or not the courts agree remains to be seen, but for now, Bankman-Fried continues to fight to clear his name.
