Sam Bankman-Fried (SBF), co-founder of the collapsed crypto exchange FTX, has filed an appeal challenging his fraud conviction on Sept. 13, arguing that the trial was tainted by judicial bias and procedural errors.

The appeal, submitted to the Second Circuit Court of Appeals on Sept. 13, alleged unfairness during the legal proceedings that resulted in SBF’s 25-year-long prison sentence and requested a new trial.

SBF was convicted on multiple charges in October 2023, including fraud and conspiracy, for his role in FTX’s dramatic collapse in the previous year.

Presumed guilty

In March, US District Judge Lewis Kaplan sentenced him to 25 years in prison. SBF’s new legal team, led by attorney Alexandra Shapiro, now argues that Kaplan’s handling of the case was biased and improperly influenced the outcome.

In the appeal, Shapiro claimed that Judge Kaplan made prejudicial remarks before the jury, portraying SBF as guilty before the trial’s conclusion. The defense also criticized the judge for restricting key defense arguments, including evidence related to SBF’s investments that could have shown his efforts to stabilize the company.

Additionally, the appeal raised concerns about procedural issues, including the claim that SBF was denied access to exculpatory evidence, known as Brady material, which could have supported his defense. His legal team contended that the government and the bankruptcy estate overseeing FTX’s dissolution worked too closely, limiting the defense’s ability to present a full case.

Reversing the conviction

At the heart of SBF’s defense is his insistence that FTX’s financial issues were not as severe as portrayed and that many customers could recover their funds through bankruptcy proceedings. His legal team argued that the court unfairly blocked this argument from being presented to the jury, creating what they described as an incomplete picture of the company’s financial state.

The appeal also highlighted testimony from several of SBF’s former associates, including Caroline Ellison and Gary Wang, who cooperated with prosecutors after pleading guilty to fraud charges. These testimonies were central to the prosecution’s case against the FTX founder.

SBF’s defense had initially sought a reduced sentence, arguing that he had no criminal intent and that FTX’s collapse was due to market conditions and mismanagement, not deliberate fraud. However, his latest appeal seeks to reverse the conviction entirely, with a new trial as the goal.

As the appeal process begins, SBF remains in custody, continuing to serve his sentence. The outcome of the appeal could have significant implications for his future, as well as the broader fallout from FTX’s collapse, which remains a pivotal moment in the crypto industry’s history.

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