Former FTX CEO Sam Bankman-Fried (SBF) has officially filed an appeal to overturn his conviction on seven felony counts and his 25-year prison sentence. The appeal comes nearly a year after his cryptocurrency exchange, FTX, collapsed in November 2022.
Appeal Alleges Bias and Misrepresentation
On September 13, SBF’s legal team submitted a 102-page appeal to the United States Court of Appeals for the Second Circuit. The filing claims that Bankman-Fried did not receive a fair trial, alleging that he was “never presumed innocent” and subjected to intense scrutiny by the media, the presiding judge, and prosecutors. The appeal contends that this bias influenced the outcome of the trial.
According to his lawyers, the jury only saw “half the picture” regarding the handling of FTX user funds, with prosecutors presenting a “false narrative” that Bankman-Fried intentionally caused the permanent loss of billions in customer assets. The defense also accused the FTX debtors’ counsel of working too closely with the U.S. government, going beyond mere cooperation and acting as an “arm of the prosecution.”
The appeal insists that the widespread belief that SBF stole customer funds, drove FTX to insolvency, and caused billions in losses was misleading. “A very different picture is emerging,” the appeal stated, claiming that FTX was not insolvent and had enough assets to repay its customers. However, the jury did not have access to this information during the trial.
Request for a New Trial
Bankman-Fried’s legal team has requested a new trial with a different judge. The U.S. Court of Appeals could either uphold his conviction, reverse the decision, or lay the groundwork for a retrial. It is still unclear how the court will rule on the appeal.
Before FTX’s collapse, SBF was a leading figure in the crypto industry, alongside other high-profile CEOs like Binance’s Changpeng Zhao and Celsius’ Alex Mashinsky—both of whom have faced their own legal troubles. FTX’s downfall was triggered by a liquidity crisis, as the company was unable to meet user withdrawal demands due to insufficient funds. It was later revealed that SBF had allegedly directed FTX’s sister company, Alameda Research, to use customer deposits for risky investments, violating U.S. federal laws.
Legal Troubles Continue for SBF
Following FTX’s collapse, Bankman-Fried was arrested in the Bahamas, where FTX was headquartered, and extradited to the U.S. He was later released on bail. However, his legal troubles worsened when he shared personal information about former Alameda CEO Caroline Ellison—his ex-girlfriend—with The New York Times in an attempt to discredit her testimony. This, along with other bail violations, led Judge Lewis Kaplan to revoke SBF’s bail and order his detention in August 2023.
Bankman-Fried’s six-week trial concluded with his conviction on multiple felony counts, including two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy, and one count of money laundering conspiracy. In March 2024, Judge Kaplan sentenced him to 25 years in prison.
