FTX News: Bankman-Fried Seeks New Trial, Accuses Judge of Bias

In one of the biggest scandals in crypto history, Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has appealed his fraud conviction. Bankman-Fried, who was found guilty in November 2022 of seven counts of fraud and conspiracy, is pushing for a new trial. His defense argues that the judge, U.S. District Judge Lewis Kaplan, was biased and influenced the jury.

Bankman-Fried is currently serving a 25-year prison sentence, but his legal team claims Kaplan’s conduct during the trial was unfair, as reported by Bloomberg.

Allegations of Bias

Shocking many in the crypto space, SBF lawyers in a 102-page appeal filed with the Second Circuit Court of Appeals, Bankman-Fried’s new attorney, Alexandra Shapiro, claims that Kaplan’s comments during the trial were biased. Shapiro alleges that the judge made “biting comments” and “derisive remarks” that damaged Bankman-Fried’s credibility in front of the jury.

According to Shapiro, “Sam Bankman-Fried was never presumed innocent” during the trial. She emphasized that Kaplan’s behavior towards the defense significantly influenced the trial’s outcome, making it impossible for Bankman-Fried to receive a fair hearing.

Key Evidence Blocked, Says Defense

The appeal also points to several procedural issues. Shapiro argues that Judge Kaplan blocked important evidence that could have helped Bankman-Fried’s case. This includes information about his investments in projects like Anthropic, which the defense claims would have shown that he still had valuable assets when FTX collapsed. The defense also argues that Kaplan unlawfully ordered asset forfeiture and denied access to key evidence—known as “Brady material”—that might have been favorable to Bankman-Fried.

Bankman-Fried’s defense goes further, accusing the Department of Justice (DOJ) of working too closely with the FTX bankruptcy team. According to the appeal, this close relationship prevented Bankman-Fried from getting access to critical evidence.

The defense argues that the bankruptcy estate acted like an “arm of the prosecution,” and the court didn’t investigate this potential conflict, adding to what they call an unfair trial.

SBF’s Bold Claims

Throughout the trial, Bankman-Fried has maintained that FTX was not insolvent when it filed for bankruptcy. He insists that customer funds were not permanently lost and that substantial amounts have been recovered by the FTX estate since the bankruptcy process began. However, the defense argues that Judge Kaplan stopped them from presenting this argument, which may have misled the jury.

Will Bankman-Fried Get a New Trial?

Bankman-Fried’s appeal hinges on these claims of judicial bias and procedural errors. As the appeal moves forward, the outcome will determine whether he gets a new trial or remains on track to serve his 25-year sentence.

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What do you think? Will Sam Bankman-Fried get a new trial?