Bankman-Fried's Lawyer Claims Jury Saw 'Half the Picture' in FTX Case Appeal
Sam Bankman-Fried's lawyer argues crucial evidence was excluded in his fraud trial, seeking to overturn his conviction and 25-year sentence. The appeal claims the jury received an incomplete narrative of FTX's financial situation.
In a significant development in the cryptocurrency world, the legal team of Sam Bankman-Fried, founder of the now-defunct FTX exchange, has filed an appeal against his conviction. The appeal, submitted on September 13, 2024, argues that the jury was presented with an incomplete picture during the trial.
Bankman-Fried's lawyer, Alexandra Shapiro, contends that U.S. District Judge Lewis Kaplan erroneously prevented the introduction of critical evidence. This evidence, according to Shapiro, would have supported Bankman-Fried's belief that FTX had sufficient funds to cover customer withdrawals. The 102-page brief filed with the 2nd U.S. Circuit Court of Appeals seeks to overturn the conviction and 25-year prison sentence.
The appeal comes nearly two years after FTX's collapse in November 2022, which marked a swift downfall for Bankman-Fried. Once valued at $32 billion, FTX was a major player in the cryptocurrency industry. Bankman-Fried, who founded FTX in 2019, saw his net worth peak at $26 billion before the company's demise.
Prosecutors accused Bankman-Fried of misappropriating $8 billion in customer funds to cover losses at Alameda Research, his crypto-focused hedge fund. Despite FTX's claim that customers will receive full recovery based on account values at the time of bankruptcy, some feel short-changed due to subsequent increases in cryptocurrency prices.
During his trial in late 2023, Bankman-Fried admitted to managerial mistakes but denied stealing funds. He attributed much of the blame to other FTX executives. However, the jury found him guilty on two counts of fraud and five counts of conspiracy.
"Bankman-Fried knew his actions were wrong but made a very bad bet about the likelihood of getting caught."
It's worth noting that Bankman-Fried's rise to prominence was marked by significant philanthropic and political donations. He was a major donor to the Democratic Party and promoted the concept of effective altruism. His casual attire and background as an MIT dropout added to his unique public persona.
The FTX collapse stands as one of the largest cryptocurrency failures in history. At its peak, the exchange boasted over 1 million users and sponsored numerous sports teams and venues. Bankman-Fried had even testified before Congress on cryptocurrency regulation and was featured on the cover of Forbes magazine.
As the appeal process unfolds, Bankman-Fried remains in custody at the Metropolitan Detention Center in Brooklyn. The outcome of this appeal could have significant implications for the cryptocurrency industry and future financial fraud cases.
