Financial similar to Sam Bankman-Fried submits petition, almost a year post-verdict of FTX deceptive practices conviction
Sam Bankman-Fried, 32, received a 25-year prison term following a jury's conviction on numerous federal charges of fraud and conspiracy in November. The charges stemmed from a multi-year plan to secretly transfer funds from FTX customers' accounts without their consent, while deceptively informing investors and lenders and indulging in extravagant purchases, such as real estate, private jet vacations, and political donations.
Two years after FTX's demise due to a lack of liquidity, Bankman-Fried is contesting that he received an unfair trial.
His legal team declared in an appeal brief that "he was considered guilty - prior to even being charged." With FTX's collapse now two years ago, they assert that "a significantly different image is emerging - one indicating that FTX wasn't insolvent and, in fact, possessed assets worth billions to reimburse customers."
They claim that Judge Lewis Kaplan made errors by undermining the defense and their lawyers, even belittling Bankman-Fried's own testimony during the preliminary hearing and in front of the jury.
The appeal parallels the arguments made preceding Bankman-Fried's sentencing earlier this year. The primary focus lies on the financial losses sustained by FTX customers.
According to the attorneys, the court refused Bankman-Fried the opportunity to present evidence indicating the solvency of FTX and its related firm, Alameda. Meanwhile, prosecutors were permitted to introduce evidence of loss.
Their final statement was, "The judgment should be repealed, and the case should be retried in front of a different judge."
Additionally, this week, lawyers for Bankman-Fried's ex-girlfriend and former partner, Caroline Ellison, petitioned the court to exclude a prison sentence for her involvement in the alleged scheme. Ellison pleaded guilty as part of a cooperation agreement with the government and served as a critical witness against Bankman-Fried at his trial.
Ellison was one of several ex-colleagues who chose to testify against Bankman-Fried and collaborate with prosecutors in an attempt to secure a more lenient sentence.
Despite the conviction and lengthy prison sentence, Bankman-Fried's legal team argues that the business practices of FTX were misrepresented during the trial, implying potential business exoneration.
Regardless of Bankman-Fried's imprisonment, the appeal for a retrial aims to shed light on FTX's actual financial status and potential assets, which could impact its business standing.
