FTX founder Sam Bankman-Fried appeals fraud conviction
Lawyers for Sam Bankman-Fried claim in an appeal filed Friday that the imprisoned FTX founder was the victim of a rush to judgment by a public that wrongly believed he was guilty of stealing billions of dollars from his customers and investors before he was even arrested.
The lawyers filed papers with the 2nd U.S. Circuit Court of Appeals asking a three-judge panel to reverse Bankman-Fried's conviction and assign the case to a new judge for a retrial, saying the trial judge "imposed a draconian quarter-century sentence on this first-time, non-violent offender" after they contend he hurried the jury into reaching a one-day verdict to cap off a complex four-week trial.
"Sam Bankman-Fried was never presumed innocent. He was presumed guilty — before he was even charged. He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial," the lawyers wrote.
They said the passing of time has cast Bankman-Fried in a better light.
"From day one, the prevailing narrative — initially spun by the lawyers who took over FTX, quickly adopted by their contacts at the U.S. Attorney's Office — was that Bankman-Fried had stolen billions of dollars of customer funds, driven FTX to insolvency, and caused billions in losses," the attorney said.
"Now, nearly two years later, a very different picture is emerging — one confirming FTX was never insolvent, and in fact had assets worth billions to repay its customers. But the jury at Bankman-Fried's trial never got to see that picture," they added.
Bankman-Fried, 32, was convicted last November of fraud and conspiracy, a year after his companies collapsed into bankruptcy as investors rushed to withdraw funds. A jury concluded that some of their money had been improperly spent on real estate, investments, celebrity endorsements, political contributions and lavish lifestyles.
At its height, FTX was treated as a pioneer and darling in the emerging cryptocurrency industry, with a Super Bowl advertisement, testimony by Bankman-Fried before Congress and endorsements from celebrities such as quarterback Tom Brady and comedian Larry David.
Bankman-Fried was arrested in December 2022 following his extradition from the Bahamas, just weeks after his company filed for bankruptcy and days after some of his former top executives began cooperating with federal prosecutors. Some of them testified against him at trial.
He initially remained under strict bail conditions at his parents' home in Palo Alto, California, but Judge Lewis A. Kaplan in Manhattan revoked his bail shortly before the trial after concluding that Bankman-Fried was trying to influence likely witnesses, including an ex-girlfriend who had served as chief executive at Alameda Research, a crypto hedge fund.
The fallen mogul is serving a 25-year sentence after he was sentenced in March in what a prosecutor once described as one of the biggest financial frauds in U.S. history.
A prosecutor's spokesperson declined to comment Friday.