Sam Bankman-Fried, the former CEO of FTX, is seeking a retrial in his fraud case, citing new witness testimony as a potential game-changer. He has approached a federal appeals panel with the argument that this new evidence could cast doubt on the original case, which resulted in a 25-year prison sentence for him.
The motion was filed on February 5 in a Manhattan federal court, challenging his 2023 conviction. It's important to note that this request is separate from his formal appeal, reflecting a strategic move to contest the verdict on multiple levels. Motions for new trials are notoriously difficult to win.
Bankman-Fried’s mother, Barbara Fried, a retired law professor from Stanford, submitted the filing, which is currently under review. Despite being considered a long shot, the filing highlights Bankman-Fried’s determination to keep the case alive and challenge the outcomes of his trial, even as the repercussions of FTX's collapse continue to impact the cryptocurrency sector.
Convicted of seven criminal charges related to the misuse of customer funds between FTX and Alameda Research, Bankman-Fried remains steadfast in claiming his innocence. In his recent motion, he argues that testimony from former FTX executives Daniel Chapsky and Ryan Salame could refute the prosecution's depiction of FTX's financial health before its downfall in November 2022. These executives did not testify during the trial, although Salame has admitted guilt to related charges and is serving a seven-and-a-half-year sentence.
Furthermore, Bankman-Fried has requested that the case be reviewed by a different judge, alleging that Judge Lewis Kaplan showed bias during the proceedings. This echoes concerns raised in his appeal, where his defense argued that the judge unjustly restricted them from informing jurors that enough funds were available to repay investors.
Meanwhile, the FTX bankruptcy estate continues efforts to return funds to affected customers. The estate has been distributing billions to creditors through a phased repayment process, with more payouts anticipated as asset recoveries and claim reviews progress.