Bankman-Fried Requests New Trial
Sam Bankman-Fried, the founder of FTX, is seeking a new trial after claiming he was not given a fair hearing during his criminal conviction. His legal team filed a brief with the US Court of Appeals for the Second Circuit, alleging that federal prosecutors prioritized sensationalism over a just trial. They argue that Bankman-Fried was unfairly presumed guilty and deprived of a fair trial.
Timeline of Bankman-Fried's Downfall
Bankman-Fried's troubles began when FTX, a major cryptocurrency exchange, collapsed, resulting in significant customer losses. Prosecutors accused him of orchestrating a fraud scheme by diverting funds from FTX clients to cover financial shortfalls in his hedge fund, Alameda Research. This case, which received global attention, led to Bankman-Fried's conviction on seven counts of fraud and money laundering, resulting in a 25-year prison sentence in March.
New Evidence Surfaces
Bankman-Fried's legal team claims that the narrative presented during the trial was inaccurate and incomplete. They argue that newly uncovered evidence shows that FTX was not insolvent and had sufficient assets to repay its customers. This evidence, which was not presented to the jury, suggests that Bankman-Fried was unfairly scapegoated for FTX's collapse, ignoring other contributing factors.
Biased Legal Representation
The filing also raises concerns about the impartiality of Bankman-Fried's former legal counsel. Lawyers at John Ray and Sullivan & Cromwell allegedly conducted extensive investigative work for the prosecution, collecting millions of documents and providing analysis to the government. The filing claims that these lawyers were motivated to shift blame onto Bankman-Fried to avoid scrutiny of their own actions.
Caroline Ellison, the former CEO of Alameda Research, is also facing legal scrutiny for her role in FTX's collapse. Her legal team is seeking leniency in sentencing, advocating for time served with supervised release based on her cooperation with authorities. The U.S. Probation Department has recommended a similar outcome in recognition of Ellison's assistance in the case.
