Sam Bankman-Fried, the founder of collapsed crypto exchange FTX, has filed an appeal challenging his fraud conviction and 25-year prison sentence, alleging judicial bias and improper limitations on his defense.
The 102-page appeal, filed Friday by Bankman-Fried’s lawyer Alexandra A.E. Shapiro, calls for a new trial and criticizes several rulings by US District Judge Lewis A. Kaplan that allegedly restricted the defendant’s ability to present evidence and mount an 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 takes issue with Judge Kaplan’s decision to prevent Bankman-Fried from arguing that FTX users had not actually lost money due to potential recoveries through bankruptcy proceedings. Shapiro contends this ruling 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 relying on legal advice for certain business decisions scrutinized by prosecutors. The filing also objects to an unusual pre-testimony deposition ordered by the judge, describing it as an “unprecedented proceeding” that gave prosecutors an unfair advantage.
“The government thus presented a false narrative that FTX’s customers, lenders, and investors had 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 conduct.
“The judge repeatedly made biting comments undermining the defense,” Shapiro wrote, “Even deriding the defendant’s own testimony during the preview hearing and in front of 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 primary bankruptcy lawyer. Bankman-Fried’s team argues the firm improperly pushed for his resignation as CEO and essentially acted as an extension of the government by providing information to prosecutors.
Bankman-Fried, 32, was convicted by a federal jury in November on charges of fraud, conspiracy, and money laundering related to the collapse of FTX. Prosecutors alleged he orchestrated a scheme to misappropriate $8 billion in customer funds. Judge Kaplan sentenced him to 25 years in prison in March.
The appeal represents a last-ditch effort by the former crypto billionaire to overturn his conviction. Federal appeals generally face long odds of success. Bankman-Fried has consistently maintained his innocence since charges were first filed following FTX’s November 2022 implosion.
A spokesman for US Attorney Damian Williams, whose office prosecuted the case, declined to comment on the appeal.
The first of Bankman-Fried’s former associates who pleaded guilty and testified against him, Caroline Ellison, is scheduled for sentencing on September 24, after appealing for a no-prison sentence. Ellison, who had an on-and-off romantic relationship with Bankman-Fried, was one of three top FTX advisers to cooperate with prosecutors.
