Sam Bankman-Fried Appeals 25-Year Sentence, Claims Presumption of Guilt

Sam Bankman-Fried, the co-founder of the failed crypto exchange FTX, is appealing his 25-year prison sentence, arguing that he was unfairly presumed guilty and denied a fair trial. His legal team highlights judicial bias and public prejudice as significant concerns surrounding his case.

Key Takeaways

Appeal Filed: Bankman-Fried is challenging his 25-year prison sentence.
Claims of Presumption of Guilt: His defense argues he faced bias from the start, influencing his trial.
Conviction Details: Convicted on seven counts related to fraud and misappropriation of over $8 billion in customer funds.
Appeal Strategy: The appeal, led by attorney Alexandra Shapiro, will focus on jury pressure and presentation of evidence.
Pardon Speculation: Discussions around potential presidential pardons have emerged.
Impact on Victims: The collapse of FTX has severely affected many creditors, leaving lasting consequences on their lives.

Sam Bankman-Fried Appeals 25-Year Sentence, Claims He Was Presumed Guilty

Appeal Details

Sam Bankman-Fried, who co-founded the now-defunct crypto exchange FTX, has submitted an appeal against his 25-year prison sentence. His legal team maintains that he was “presumed guilty” from the very beginning of the legal process, which they argue resulted in an unfair trial due to biases from the judge and public opinion.

As reported by Bloomberg on Tuesday, Bankman-Fried's lawyers filed the appeal with the U.S. Court of Appeals for the Second Circuit in New York, claiming that his conviction was the result of a “rush to judgment” influenced by prosecutors, media coverage, and U.S. District Judge Lewis Kaplan.

The defense asserted, “Sam Bankman-Fried was never presumed innocent. He was presumed guilty—before he was even charged.”

The appeal also criticizes Judge Kaplan, alleging he showed bias during the trial by “repeatedly ridiculing” the defense lawyers and displayed doubt towards Bankman-Fried’s testimony in front of the jury.

Background on Conviction

Bankman-Fried was found guilty in 2023 on seven counts involving fraud and conspiracy tied to the collapse of FTX and its trading partner, Alameda Research. Prosecutors accused him of misappropriating over $8 billion in customer funds for various personal expenses, including political contributions and luxury properties.

Despite his assertion that he had no intention of defrauding anyone, the jury delivered a guilty verdict in under five hours.

Leading the appeal is attorney Alexandra Shapiro, who has a successful track record in overturning high-profile convictions. Recently, she helped clear Neil Cole, the founder of Iconix Brand Group, in a similar appeal.

Sam Bankman-Fried Appeals 25-Year Sentence, Claims He Was Presumed Guilty

Shapiro intends to argue that Judge Kaplan unfairly restricted Bankman-Fried’s ability to provide vital evidence, such as demonstrating that FTX had enough assets to compensate customers and that he acted based on legal advice from the company’s lawyers.

The defense argues that Judge Kaplan pressured jurors into a swift conclusion by offering to prolong deliberations into the night with dinner arrangements provided, and they claim that some of his remarks, like calling portions of Bankman-Fried’s testimony “a joke,” undermined the fairness of the trial. The appeal aims to reverse the 25-year sentence and contest the $11 billion restitution order, requesting a new trial with a different judge.

Speculation on Pardon

Earlier this year, reports suggested that Bankman-Fried's parents had investigated options for obtaining a presidential pardon from Donald Trump. In March, he appeared on Tucker Carlson’s podcast, where he expressed criticism of former SEC Chair Gary Gensler.

Recently, a post from his official X account claimed that the Biden administration's “anti-crypto SEC/DOJ” had pursued his arrest in 2022 to obstruct his congressional testimony regarding a crypto bill.

“I was arrested weeks before the crypto bill I was working on was due for a vote—and the night before I was set to testify before Congress,” the post stated.

While Bankman-Fried's legal team is optimistic about the appeal's prospects, legal experts caution that overturning such a high-profile conviction is uncertain. Many prominent voices in the crypto space think he is not in the same league as figures like Ross Ulbricht or Changpeng Zhao, and a pardon might send a problematic message to other potential wrongdoers.

Allowing an escape from consequences less than a year post-sentencing could encourage future entrepreneurs to exploit investors.

Effects of the FTX Collapse on Victims

The fallout from FTX's collapse has significantly affected its victims. One creditor shared a heart-wrenching message prior to Bankman-Fried’s sentencing, stating, “My whole life has been destroyed. I have two young children, one born just before the collapse. Beyond the financial loss, I lost my happiness, my ability to get out of bed, and my will to live. My wife is suffering from depression and is suicidal.”

Others recounted their struggles being on the verge of losing their homes, explaining how their efforts to escape “generational poverty” were undone when FTX suddenly halted withdrawals.

Currently, Bankman-Fried is serving his sentence at a federal facility in California and is not anticipated to attend the appeal hearing.