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.
In a Sept. 13 filing in the United States Court of Appeals for the Second Circuit, SBF’s lawyers filed a 102-page brief claiming that the former FTX CEO was “never presumed innocent,” subject to scrutiny that allegedly affected prosecutors, the presiding judge, and treatment by the media. Bankman-Fried’s legal team announced in April — a few weeks after a federal judge sentenced him to 25 years in prison — that they intended to appeal.
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.”
Sam Bankman-Fried’s appeal. Source: US Court of Appeals for the Second Circuit
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.
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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.
In the leadup to Bankman-Fried’s criminal trial, the former CEO shared personal information about former Alameda CEO Caroline Ellison — also his ex-girlfriend — with New York Times reporters. The article and other bail violations contributed to Judge Lewis Kaplan ordering SBF remanded to jail, where he has been housed since August 2023.
Following a six-week trial, a jury convicted Bankman-Fried on two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy. In March 2024, Judge Kaplan sentenced him to 25 years in prison.
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.
Former FTX Digital Markets co-CEO Ryan Salame, who reportedly tipped off Bahamian authorities about FTX’s activities, pleaded guilty to criminal charges in 2023 and was later sentenced to 90 months in prison. However, Judge Kaplan is considering whether to allow him to petition to vacate his guilty plea, which could result in a new trial.
Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang all pleaded guilty and testified at SBF’s trial, largely cooperating with authorities. The former Alameda CEO is scheduled to be sentenced on Sept. 24, while Singh and Wang have hearings set for October and November, respectively.
Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame