Ex-CEO of FTX Files Appeal for a New Trial with a New Judge

• Former CEO of FTX, Samuel Bankman-Fried, filed an appeal for a new trial with a new Judge.
• Bankman-Fried was charged with fraud, conspiracy, and money laundering in Nov. 2023.
• The ex-CEO is facing a 25-year term in federal prison for cheating investors of $8 billion.

Sam Bankman-Fried, the former CEO of the collapsed cryptocurrency exchange FTX, filed an appeal seeking a new trial. He alleged judicial bias and unfair treatment during his initial case proceedings. 

In a 102-page filing, Bankman-Fried’s defense, represented by attorney Alexandra Shapiro, stated that U.S. District Judge Lewis Kaplan showed partiality in the case. It led to the extent of violating the former executive’s right to present his defense and evidence. Shapiro said,

He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial.

The appeal identified several errors made by Judge Kaplan, including the former’s refusal to allow Bankman-Fried to argue that FTX customers could still reclaim money via bankruptcy proceedings. 

Shapiro pointed out that this exclusion enabled the prosecution to paint a partial picture, emphasizing permanent financial losses that were not necessarily true. Moreover, the defense stressed that Kaplan denied Bankman-Fried a chance to testify that he had to rely on legal advice to handle business issues.

In November last year, a jury in New York found the former CEO guilty. They convicted him on seven felony counts of cheating users, lenders, and investors of FTX. Further, the charges were compared to Ponzi scheme mastermind Bernie Madoff. Interestingly, Caroline Ellison, the ex-girlfriend of Bankman-Fried and the former CEO of Alameda Research, who was also convicted of the crime, is set to be sentenced later this month. 

Bankman-Fried is currently serving a 25-year prison sentence after being convicted of fraud, conspiracy, and money laundering of customer funds worth over $8 billion. The new trial is requested to be presided over by a new judge. This appeal stands as one of the last resorts for the former billionaire to fight his conviction concerning the loss of over $8 billion belonging to FTX customers.