Sam Bankman-Fried files appeal for felony conviction

Lawyers representing former cryptocurrency exchange FTX CEO Sam “SBF” Bankman-Fried have filed a long-anticipated appeal for his conviction on seven felony counts and his 25-year prison sentence.

According to the appeal, SBF’s lawyers alleged the jury was “only allowed to see half the picture” with FTX user funds, claiming prosecutors had “presented a false narrative” that the money was permanently lost and Bankman-Fried intentionally caused that loss. They also claimed that counsel for the FTX debtors worked with the US government in a way that was above and beyond “cooperation,” providing information allegedly as an “arm of the prosecution.”

“From day one, the prevailing narrative—initially spun by the lawyers who took over FTX, quickly adopted by their contacts at the US Attorney’s Office— was that Bankman-Fried had stolen billions of dollars of customer funds, driven FTX to insolvency, and caused billions in losses,” said the appeal. “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.”

The legal team requested the appellate court grant SBF a new trial with a different judge. It’s unclear whether the Second Circuit could rule to affirm Bankman-Fried’s conviction in the US District Court for the Southern District of New York or reverse the decision and set the groundwork for a new trial.

Background

Before 2022, Bankman-Fried was one of the most prominent names in the crypto industry, along with then-Binance CEO Changpeng Zhao and then-Celsius CEO Alex Mashinsky—both of whom have gone on to face criminal indictments. In November, however, a liquidity crisis at FTX rapidly caused the exchange to collapse as it did not have the funds to back user withdrawals.

Authorities later discovered that Bankman-Fried allegedly ordered FTX’s sister firm Alameda Research to use funds from the exchange for investments, in violation of federal laws. Bankman-Fried was extradited from the Bahamas — FTX’s headquarters and SBF’s home at the time — to the US, where he was indicted and released on bail.

Others awaiting sentencing, tied up in court

Bankman-Fried was one of the biggest names in the criminal indictment, but four others also potentially face prison.