Sam Bankman-Fried Files for New Trial, Claiming Biden Administration's Justice Department Silenced Key Witnesses Sam 'SBF' Bankman-Fried has filed a motion for a new trial, alleging that the Justice Department pressured or silenced key witnesses during his FTX fraud trial, citing so-called "new evidence." Bankman-Fried, formerly known as X, has posted a link to a Motion for a New Trial under Rule 33 of the Federal Rules of Criminal Procedure, stating, "New evidence has emerged that the Biden Administration's Justice Department pressured multiple witnesses to change their statements or change their statements. My convictions should be reversed." Bankman-Fried's motion, based on a statement from a former FTX employee, alleges that prosecutors' claims of bankruptcy and insufficient assets in the FTX Alameda case were flawed. Bankman-Fried was convicted on seven counts of misappropriating client funds following the collapse of FTX and its 150 affiliates and sentenced to 25 years in prison. U.S. prosecutors alleged that FTX client deposits were diverted to cover trading losses at its sister firm, Alameda Research, resulting in a financial hole of approximately $8.9 billion (approximately KRW 12.9383 trillion).
Former FTX Employee Statement: "Testifying Will Lead to Retaliation"
At the heart of the lawsuit is a declaration from Daniel Chapsky, a former head of data science at FTX. He outlines his reasons for not appearing in court and the details of his intended testimony in a new document. In his declaration, dated July 13, 2023, Chapsky claims his attorneys strongly warned him that if he testified, he would be subject to media scrutiny and retaliation from the prosecution. He added that other former FTX employees had also heard similar warnings. Ultimately, he explained, "Out of concern for my safety and that of those around me, I asked my attorney to inform Bankman-Fried that I would not testify." Chapsky further argued that had he testified, he "could have refuted the prosecution's inaccurate account of FTX's financial condition and provided the jury with more accurate information." In this filing, Bankman-Fried's team argues that these statements constitute "intentionally excluded testimony" and that the trial was unfair as a result.FTX and Alameda weren't insolvent until bankruptcy.
Bankman-Fried's defense emphasizes in its new motion that Chapsky's testimony directly contradicts the prosecution's core framework surrounding the financial health of FTX and Alameda Research. Prosecutors have argued that both companies were effectively insolvent even before their bankruptcy filings in November 2022. In contrast, Chapsky allegedly "asserts" in his deposition that FTX and Alameda Research's "net asset value" consistently exceeded their liabilities and were not insolvent in November 2022. The motion states that this "directly contradicts the prosecution's account presented to the jury." Bankman-Fried has repeatedly argued in interviews that "FTX remained structurally solvent and could have been saved if certain investment proposals had been successful." Notably, in an October 2025 interview, he described the decision to hand over FTX to bankruptcy attorney John J. Ray III on November 11, 2022, as his "biggest mistake," stating, "I received an offer to save the company with outside investment." However, the market is divided on how much of this claim is true and how much is an after-the-fact "avoidance of responsibility." The legal battle surrounding how customer deposits and company assets were actually separated and managed, and how much liquidity was actually secured just before bankruptcy, is likely to continue for the time being.Will the controversy over the fairness of the FTX trial be reignited?
Bankman-Fried's request for a new trial will not be granted immediately. Instead, the court will first review the credibility of the "new evidence" and its potential impact on the trial outcome. Rule 33 of the Federal Rules of Criminal Procedure allows the court to order a new trial even after a guilty verdict if there is sufficient reason to believe that new, material evidence has come to light. This case could reignite the FTX scandal, which appeared to have been resolved with a guilty verdict and a heavy sentence. If the interpretations surrounding the financial status of FTX and Alameda, the extent of the misappropriation of customer funds, and the level of management's intention and responsibility are shaken, it could significantly impact future civil and criminal litigation, as well as bankruptcy proceedings and the prospects for debt collection. However, given the nature of the American judicial system, cases where guilty verdicts are overturned or a full trial is initiated are rare. How persuasive Chapsky's testimony will be in court as "critical evidence" and what counterarguments the Justice Department will offer to the allegations of "witness intimidation and hush-hush" will be key points of interest going forward. For now, Bankman-Fried's assertion of FTX's ability to pay seems more likely to reignite debate over the fairness of the trial process and the prosecutorial investigation than to fundamentally change the market's perception of FTX or creditor expectations.---
Lombard is moving to use custodial BTC as collateral for DeFi with its "Bitcoin Smart Accounts." Lombard, an institutional infrastructure provider, is moving into full swing with its experiment to enable on-chain collateralization of Bitcoin without having to physically move it or relinquish custody. Amid the rapidly expanding DeFi lending market, the company aims to bring idle Bitcoin (BTC) held by large institutions onto the blockchain. Lombard announced plans to launch "Bitcoin Smart Accounts" this quarter. This account structure will allow institutionally custodial Bitcoin to be designated as on-chain collateral without having to hand it over to a third party. According to the company, custodial Bitcoin will be recognized on-chain as a receipt token called "BTC.b." Institutional investors can use this token to access lending and liquidity provision protocols while maintaining legal ownership and the underlying custodial agreement. The company stated that this framework is primarily targeted at asset managers, corporate treasuries, and other institutional Bitcoin holders. While pilot programs are currently underway with a select number of institutions, the specific client names and transaction sizes have not been disclosed.
"$1.4 Trillion in Bitcoin, Most Still Idle"
In an interview with Cointelegraph, Lombard co-founder Jacob Phillips explained that "decentralized exchanges already account for a significant portion of all cryptocurrency transactions, and about half of lending and borrowing occurs on-chain." Despite this, he points out that Bitcoin remains a "stagnant asset." Phillips stated, "Currently, approximately $1.4 trillion worth of Bitcoin is effectively locked up, with only about $40 billion actually deployed in DeFi." He explains that because Bitcoin does not offer staking rewards natively, like Proof-of-Stake (PoS) networks like Ethereum (ETH), many institutions and long-term holders have left their Bitcoin as a "non-yielding asset." Until now, for institutions to utilize Bitcoin in DeFi, they had to either convert it to a token form, such as wrapped BTC, or migrate it to a centralized service. As the burden of custodial security and regulatory compliance grew, most institutions hesitated to take action. Lombard's strategy is to address this issue through its "smart account" structure.Partnering with Morpho to Open On-Chain Liquidity
Lombard has selected Morpho, a DeFi lending protocol, as its initial liquidity partner. Morpho is already recognized for its institutional-friendly lending infrastructure, including the ability to separate Bitcoin-collateralized loans into individual pools. Phillips emphasized that the Bitcoin Smart Account is not a "closed solution" dependent on a specific partner, but rather an "open infrastructure" that allows for the gradual integration of various DeFi protocols and custodians. The company plans to expand integration with additional on-chain protocols as demand is identified. Founded in 2024, Lombard has been developing Bitcoin-centric on-chain infrastructure and tokenized assets. The company operates products such as LBTC and BTC.b, designed to allow Bitcoin to be utilized in DeFi without having to move it out of existing custody systems.Coinbase, Solve, Fireblocks… Products to wake up sleeping BTC one after another.
Lombard's move coincides with the rapid diversification of institutional Bitcoin yield products. On May 1st, the US cryptocurrency exchange Coinbase ($COIN) launched the "Coinbase Bitcoin Yield Fund," targeting institutional investors outside the US. The fund aims to generate annual net returns of 4-8% on Bitcoin holdings. A few months later, Solv Protocol launched "BTC+," a structured yield vault for institutional investors. This product seeks yield by allocating Bitcoin to various strategies spanning DeFi, centralized finance (CeFi), and traditional financial markets. Key strategies include protocol staking, basis arbitrage, and exposure to tokenized real assets (RWAs). On February 4th, Fireblocks, an institutional cryptocurrency infrastructure provider, announced its integration with Stacks (STX), giving institutional clients access to Bitcoin-based lending and yield products. Bitcoin is no longer a "digital vault asset," but is increasingly being absorbed into on-chain finance within the scope of regulatory and custody requirements. However, as the structure of wrapped tokens and on-chain yield products becomes more complex, both smart contract risk and counterparty risk can increase. Therefore, both institutional and individual investors should closely examine product structures and collateral management mechanisms.💡 In a market where both crisis and opportunity exist simultaneously, it is necessary to have an eye for reading the structure.
From the FTX debacle, to Sam Bankman-Fried's new trial filing, to Lombard's "Bitcoin Smart Account," markets are constantly experiencing a crossroads of extreme risk and new opportunities.
While some are creating a posthumous "accountability narrative," others are accelerating experiments to convert $1.4 trillion of "sleeping Bitcoin" into on-chain liquidity.
In this flow, truly skilled investors do two things simultaneously.
- **Analyze the nature and structure of risk** in the context of trials, regulations, and bankruptcy issues
- Decide whether to participate after **understanding the structure and limitations of new infrastructure** such as Bitcoin smart accounts, BTC.b, and DeFi lending.
TokenPost Academy is a seven-step masterclass that systematically teaches this "structural reading ability." Beyond simple news consumption,
Not “What happened?”
We dissect “Why does this happen repeatedly in this structure?”
From the FTX incident to the "BTC Smart Account," a 7-step curriculum that delves into the structure.
🟢 Phase 1: The Foundation
When a large exchange like FTX is shaken,
“Where and how should my assets be stored to ensure their safety?”
You should check it first.
- Wallet security (IMPORTANT) covers the basics of asset defense against hacking and bankruptcy risks.
- Through the structural differences between exchanges, brokers, and hot/cold wallets
“If you don’t know the trust structure, why are individuals always the last victims?”
- The Crypto & Taxes section also covers how legal disputes and tax issues can impact actual investment returns.
🔵 Phase 2: The Analyst (Valuation and Analysis)
SBF's claim that "FTX was still solvent"
To judge how true something is, you need to look at the 'numbers and structure', not the 'narrative'.
- In the Tokenomics part
- Analyze insider volume, inflation, and lockup release structure
Learn how to identify 'FTX·Alameda-style risk structures' in advance
- In Onchain Analysis
- Learn a framework for examining the actual health of exchanges and projects using on-chain data.
The key at this stage is,
“I don’t believe what anyone says, whether it’s the prosecution, the founder, or the media.
It's about becoming an "investor who can reconstruct with data."
🟡 Phase 3: The Strategist (Investment Strategy and Portfolio)
In an environment where products like Lombard, Coinbase Bitcoin Income Fund, and BTC+ are flooding in,
“How much can I earn?”
“What is the appropriate proportion of this product in my overall portfolio?” comes first.
- Via Risk & Return , DCA , How to Construct Your Investment Portfolio
- How to design exposure to cash, spot BTC, yield-generating products, and DeFi.
- Covers the principles of maintaining a portfolio in both rising and falling markets.
🟠 Phase 4: The Trader (Technical Analysis and Trading)
In a market where short-term plunges and sharp rebounds are repeated, such as the FTX collapse,
- Selling due to fear,
- Pursuit buying fooled by shallow rebound
Skills to avoid them are essential.
- Through Support & Resistance, Trends , and Reversal Patterns
- Distinguish between a real bottom and a short-term trap after a plunge
- Order Types and practical trading tutorials
- Practice systematic entry and exit in volatile markets.
🟣 Phase 5: The DeFi User (Decentralized Finance)
Lombard's 'Bitcoin Smart Account', BTC.b, Coinbase Bitcoin Profit Fund, BTC+ Vault, etc.
Ultimately, it all boils down to the question, "How do we make Bitcoin work within a DeFi/on-chain architecture?"
However, if we do not understand the structure, the same situation as algorithmic and derivative stablecoins like USDe and UST will repeat itself.
At this stage:
- DeXs explained (Order book vs AMM)
Understand how Bitcoin is wrapped on-chain and in which markets it is traded.
- Through Liquidity pools & Yield Farming , Divergence (Impermanent) Loss
- What risks and returns does the 'receipt token' structure, such as BTC.b, WBTC, and LBTC, bring?
- Learn how to calculate impermanent loss and smart contract risk.
- In Lending & Borrowing (LTV, Liquidation)
When you take out a DeFi loan using Bitcoin as collateral,
- At what level of LTV should the safety line be drawn?
- Quantitatively calculate in what situations liquidation occurs.
🔴 Phase 6: The Professional (Futures and Options)
FTX has been a hub for high-leverage derivatives trading.
Investors who entered derivatives without understanding this structure,
I lost my account in just a few volatility swings.
- Through Leverage & Margin Risk Warning , Stop Loss Strategies , and Position Size Calculation
- Not “How to get rich with leverage”
- Covers “How to survive in the market for a long time even with leverage.”
- In the Options section
- Protective Put for protection against a falling market
- Covered Call, a profit supplement strategy, etc.
We will take a close look at the strategies used by actual organizations and professionals, starting from the structure.
⚫ Phase 7: The Macro Master (Macroeconomics and Market Cycles)
SBF's new trial filing, regulatory and judicial risks,
And the 'Bitcoin Interest Era' opened by Lombard, Coinbase, Solve, and Fireblocks
It all boils down to a question of “liquidity, trust, and cycles.”
-What is the Denominator? (Liquidity)
We summarize how global interest rates and liquidity affect crypto collateral and DeFi returns.
- Via Bitcoin Halving & Cycles , Bitcoin Realized Price vs True Market Mean
- Bitcoin's on-chain cycle and
- Learn how to structurally interpret the timing of institutional money inflow and outflow.
From “investors who consume news” to “investors who dissect structures”
SBF's responsibility dispute, FTX trial fairness controversy,
And the experiments of institutions trying to attract Bitcoin as DeFi collateral
It will continue in the future.
There is only one question.
Will you consume this news as a 'rumor'?
Or will it be used as material for ‘structural analysis’?
Token Post Academy
- Protect your assets with the basics (Phase 1),
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Provides a consistent roadmap.
In 2026, in an era where on-chain finance and regulatory risks are simultaneously increasing,
The last line of defense that will protect you is ultimately “the ability to understand the structure.”
Curriculum : 7-step masterclass from basics to on-chain, DeFi, futures options, and macro analysis.
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🔎 Market Interpretation
SBF is requesting a retrial, citing allegations that the US Department of Justice intimidated key witnesses during the FTX trial, suppressing or distorting their testimony. At the heart of the case is a deposition from Daniel Chafsky, former head of data science at FTX, asserting that FTX and Alameda were not insolvent on accounting grounds until just before their bankruptcy in November 2022. If even a portion of this is accepted by the court, it could further highlight the issue of actual insolvency as a key issue in future major exchange bankruptcies, not just in SBF's sentencing and conviction.
Meanwhile, Lombard's "Bitcoin Smart Accounts," introduced in the second article, reflect institutionally held Bitcoin locked in custodial accounts on-chain in the form of receipt tokens (BTC.b), allowing them to be used as DeFi collateral while maintaining legal ownership and custody. This has the potential to shift some of the currently estimated $1.4 trillion inactive BTC liquidity on-chain, potentially impacting the expansion of the Bitcoin-based DeFi market in the medium to long term.
💡 Strategy Points
• Regulatory and Legal Risk Check: The SBF retrial issue is a legal dispute over the "actual financial status at the time of bankruptcy" and the "prosecution's method of prosecution." This reveals which data and testimony will be key issues in the event of future bankruptcy or insolvency issues at major exchanges and custody providers. When selecting an exchange or custody provider, it's essential to check accounting transparency, collateral management structure, and disclosure of bankruptcy procedures.
• Focus on on-chain collateral infrastructure: As infrastructure for reusing BTC held in institutional custody on-chain increases, such as the Lombard–Morpho structure, (1) Bitcoin's "non-yielding asset" limitations may be partially alleviated, and (2) DeFi interest rate and liquidity structures may be reorganized around BTC. However, it is essential to confirm the 1:1 correspondence between the receipt token (e.g., BTC.b) and the actual custodial asset, legal ownership, and handling mechanisms in case of liquidation or default.
• Comparison of BTC yield products for institutions: Various institutional-only BTC yield solutions are emerging, such as Coinbase's Bitcoin Yield Fund (targeting 4-8% annual returns), Solv's BTC+ structured products, and Fireblocks-Stacks integration. Investors and institutions should objectively assess the "probability of principal loss" by comparing (1) yield sources (spot/futures basis, staking, RWA, etc.), (2) counterparty risk (centralized vs. on-chain), and (3) whether leverage or derivatives are used.
• Monitoring political and policy variables: As SBF directly mentions the "Biden DOJ" and asserts political pressure, it's important to monitor how the enforcement and prosecution trends related to cryptocurrency will change in response to the US presidential election and changes in administration. In a climate of strong regulation, a defensive stance (e.g., decentralized storage, use of regulatory-friendly exchanges, and preference for protocols with high on-chain transparency) may be advantageous against enforcement risks.
📘 Glossary
• Insolvency: This refers to a situation where liabilities exceed assets or where debts cannot be repaid in the short term. In the FTX case, the key issue is whether customer liabilities actually exceeded assets at the time of bankruptcy, and the prosecution and SBF are directly debating this issue.
• Federal Rule of Criminal Procedure 33 (FRCP 33): This provision allows a defendant to request a new trial (retrial) based on "new evidence discovered after the trial." This new evidence must not be a mere complaint, but must have a substantial impact on the conviction or sentence.
Receipt Tokens (e.g., BTC.b): These tokens are issued to reflect ownership of actual Bitcoin held in regulated custody on-chain. These tokens can be used as collateral for lending and liquidity provision in DeFi, and theoretically, they should be exchangeable 1:1 with actual BTC at any time.
• Custody: A service where an institution or professional business holds and manages a client's assets (cryptocurrencies, securities, etc.) on their behalf. Due to internal rules and regulations, institutional investors often use regulated custodians rather than managing their own wallets.
• On-chain collateral: This structure involves depositing assets (e.g., tokens) into a smart contract on the blockchain and using them as collateral for loans or derivatives transactions. Since Bitcoin doesn't natively support this feature, it's often used indirectly through wrapping (e.g., wBTC) or, as in this article, through a receipt token structure.
💡 Frequently Asked Questions (FAQ)
Q.
What do Bankman-Fried's (SBF) motion for retrial and the Chapsky statement mean for the FTX case?
SBF argues, based on a new affidavit from former FTX data science chief Daniel Chafsky, that FTX and Alameda were not insolvent on paper until the very end of their bankruptcy. This contradicts the prosecution's narrative of an $8.9 billion deficit due to misappropriation of customer funds, and argues that the financial statements the jury heard may have been incomplete. If the court recognizes the credibility of this evidence and its impact on a fair trial, it could lead to some guilty verdicts or even a review of the sentences.
Q.
How do Lombard's 'Bitcoin Smart Accounts' and BTC.b differ from traditional Bitcoin investments?
Traditionally, institutionally held Bitcoin was often simply held in regulated custody accounts, often failing to generate any income. Lombard's Bitcoin Smart Accounts represent BTC held in custodial accounts as a receipt token called "BTC.b" on-chain, allowing the actual Bitcoin to remain in custody while still being used as collateral on-chain. This allows institutions to maintain legal ownership and custody structure while also pursuing additional revenue opportunities, such as lending and liquidity provision, through DeFi protocols like Morpho.
Q.
What are the risks and opportunities of institutional Bitcoin yield products (Coinbase, Solv, Fireblocks, etc.)?
BTC yield solutions targeting institutions, such as the Coinbase Bitcoin Yield Fund, Solv's BTC+ structured product, and the Fireblocks-Stacks integration, offer additional annual returns exceeding several percent. However, this requires a thorough understanding of the structure. Yields primarily come from DeFi lending, futures basis trading, RWA (real asset) linkages, and staking. However, market fluctuations can expose these solutions to risks such as collateral liquidation, partner defaults, smart contract vulnerabilities, and regulatory changes. Therefore, it's crucial to consider not only the expected return but also the use of leverage, on-chain transparency, and the scope of regulation and oversight.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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