Sam Bankman-Fried appeals fraud conviction, claims judicial bias

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Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, has filed an appeal challenging his fraud conviction and 25-year prison sentence, citing judicial bias and improper limitations on his defense.

The 102-page appeal, filed Friday by Bankman-Fried’s attorney, Alexandra AE Shapiro, seeks a new trial and criticizes several rulings by U.S. District Judge Lewis A. Kaplan that would have restricted the defendant’s ability to present evidence and hold a trial. effective defense.

“Sam Bankman-Fried was never presumed innocent,” Shapiro wrote in the filing. “He was presumed guilty by the judge who presided over his trial.”

The appeal challenges Judge Kaplan’s decision to bar Bankman-Fried from arguing that FTX users did not actually lose money because of potential bankruptcy recoveries. Shapiro argues that this decision allowed prosecutors to present a “false narrative” of permanent customer losses to the jury.

Additionally, the appeal criticizes Judge Kaplan for limiting Bankman-Fried’s ability to testify about her reliance on legal advice for certain business decisions examined by prosecutors. The filing also objects to an unusual pre-testimony deposition ordered by the judge, calling it an “unprecedented proceeding” that gave prosecutors an unfair advantage.

“The government thus presented a false narrative that FTX’s customers, creditors and investors permanently lost their money,” the appeal states. “The jury was only allowed to see half the picture.”

Bankman-Fried’s legal team argues that these and other rulings by Judge Kaplan created an unfair trial environment. The appeal seeks not only a new trial, but also requests that it be conducted before a different judge, citing alleged bias in Kaplan’s courtroom behavior.

“The judge repeatedly made stinging comments, undermining the defense,” Shapiro wrote, “even lifting the defendant’s own testimony during the preliminary hearing and before the jury.”

The appeal also raises concerns about the role of law firm Sullivan & Cromwell, which served as FTX’s outside counsel before becoming its lead bankruptcy attorney. Bankman-Fried’s team alleges the firm improperly pushed for his resignation as CEO and essentially acted as an extension of the government, providing information to prosecutors.

Bankman-Fried, 32, was convicted by a federal jury in November of fraud, conspiracy and money laundering charges related to the FTX collapse. Prosecutors alleged he orchestrated an $8 billion scheme to embezzle client funds. Judge Kaplan sentenced him in March to 25 years in prison.

The appeal is a last-ditch effort by the former crypto-billionaire to overturn his conviction. Federal appeals generally face a high chance of success. Bankman-Fried has consistently maintained his innocence since charges were first filed following the FTX implosion in November 2022.

A spokesman for U.S. Attorney Damian Williams, whose office prosecuted the case, declined to comment on the appeal.

The first of Bankman-Fried’s former associates to plead guilty and testify against him, Caroline Ellison, is scheduled for sentencing on September 24 after appealing for a non-jail sentence. Ellison, who had a romantic relationship with Bankman-Fried, was one of three top FTX advisers who cooperated with prosecutors.

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