Bankman-Fried Requests Fresh Trial in FTX Case Based on Previously Unavailable Witness Evidence
In his FTX fraud case, Sam Bankman-Fried has petitioned a federal appeals panel to grant a new trial, claiming that testimony from witnesses not previously available could undermine the prosecution's case that resulted in a 25-year prison term.
Sam Bankman-Fried, the former chief executive officer of FTX, has petitioned a federal court to grant him a new trial on his fraud charges, claiming that witness testimony which was not available during the original proceedings could potentially weaken the prosecution's case that resulted in him receiving a 25-year prison sentence.
According to a report by Bloomberg, Bankman-Fried filed a motion on Feb. 5 with the Manhattan federal court challenging the conviction he received in 2023, although this particular request stands separate from his formal appeal process. Legal experts note that motions seeking new trials must meet stringent legal standards and courts rarely approve such requests.
Barbara Fried, Bankman-Fried's mother and a retired law professor from Stanford University, submitted the filing to the court on his behalf, and it is currently under judicial review. The Bloomberg report characterized this legal maneuver as having a low probability of success.
Nevertheless, this action ensures the case remains open and demonstrates Bankman-Fried's approach of challenging the verdict through multiple legal avenues, even as the repercussions from FTX's implosion continue to echo throughout the cryptocurrency industry years later.
A jury found Bankman-Fried guilty on seven criminal charges related to the misappropriation of customer funds at FTX and Alameda Research, its connected trading firm, marking one of the cryptocurrency sector's most significant fraud prosecutions in its history. Notwithstanding the guilty verdict, Bankman-Fried continues to assert his innocence.
What the filing argues, specifically
The motion submitted by Bankman-Fried argues that witness statements from Daniel Chapsky and Ryan Salame, both former executives at FTX, have the potential to contradict the government's account regarding the financial state of the company prior to its November 2022 collapse.
Both executives were absent from the original trial proceedings, although Salame entered a guilty plea to charges involving campaign finance violations and fraud. He is presently incarcerated, serving out a seven-and-a-half-year prison term.
Additionally, Bankman-Fried has requested that a different judge be assigned to review this motion, claiming that Lewis Kaplan, the judge who presided over the trial, demonstrated "manifest prejudice" throughout the court proceedings.
These assertions mirror earlier arguments that were presented during Bankman-Fried's appeal hearing, where his legal counsel argued that Judge Kaplan inappropriately prevented the defense from informing jurors that adequate funds existed to reimburse investors.
In the meantime, the FTX bankruptcy estate, which represents the pool of remaining assets under the supervision of court-appointed administrators, is continuing to make headway in the process of returning funds to impacted customers. The cryptocurrency exchange is utilizing a phased repayment approach and successfully distributed billions of dollars to creditors throughout 2025, with further distributions anticipated as the estate continues recovering assets and reviewing claims.