FTX founder Sam Bankman-Fried filed a defense requesting a new trial, arguing that new witnesses could refute the fraud allegations and that FTX has always been able to pay its customers.
Sam Bankman-Fried, the founder of FTX, who is serving a 25-year prison sentence, has filed a self-defense petition requesting a retrial in the case related to the collapse of the cryptocurrency exchange.
The petition, filed on February 5 and formally recorded in Manhattan federal court, was sent to the court clerk by his mother, Barbara Fried, a former Stanford University law professor. This petition is separate from the appeal against the 2023 conviction, which is currently being XEM by a three-judge appellate panel.
Bankman-Fried was convicted on seven criminal charges, including fraud and conspiracy, after admitting to illegally transferring billions of dollars from FTX client accounts to its affiliate, Alameda Research. The hedge fund's risky investments contributed to the collapse of FTX in 2022.
However, in his appeal, he argued that the two former FTX executives, Daniel Chapsky and Ryan Salame, could refute the prosecutor's argument regarding the company's financial situation at the time.
Allegations of bias and obstruction of evidence.
Bankman-Fried argued that Judge Lewis Kaplan's rulings had distorted the jury's decision and requested the appointment of a different judge to XEM the retrial request. He claimed that Salame had evidence bolstered by emails, Mnemonics , and legal documents, but that authorities had pressured and threatened Salame's pregnant fiancée to force him to plead guilty.
Salame, who was sentenced to seven and a half years in prison, also said that prosecutors did not explicitly mention that Alameda did not need a U.S. Money Transfer License for his extraterritorial activities.
Bankman-Fried's lawyer, Shapiro, criticized Judge Kaplan for improperly preventing the presentation of evidence regarding FTX's financial condition to the jury, arguing that the exchange had sufficient resources to repay investors despite the collapse.
Kaplan also did not allow the presentation of evidence relating to the legal advice provided to the former CEO, following an unusual hearing in which the judge ordered Bankman-Fried to answer questions for three hours without a jury present.
Bankman-Fried stated, “They lied, saying I stole billions of dollars and bankrupted FTX. But the money was always there, and FTX was always able to pay.” He also argued that the Biden administration made baseless accusations due to its negative attitude toward crypto assets and his shift from supporting the Democratic to the Republican Party.
Despite seeking a pardon from President Donald Trump, Trump has stated he has no intention of releasing the former FTX CEO.
