In a dramatic turn of events, Sam Bankman-Fried, the former CEO of the now-defunct FTX cryptocurrency exchange, is pursuing a new trial after being convicted on several fraud charges. This legal maneuver follows the collapse of his crypto empire, which once boasted a valuation exceeding $30 billion.
Bankman-Fried”s request for a retrial comes shortly after he dismissed his legal counsel, choosing to represent himself. His mother, Barbara Fried, a professor of ethics at Stanford Law, filed a pro se motion in the U.S. District Court for the Southern District of New York on his behalf. The filing alleges that the Department of Justice withheld critical evidence and calls for the recusal of Judge Lewis Kaplan, who oversaw the original trial.
The motion asserts, “Sam Bankman-Fried was indicted on the false allegation that he had stolen customer assets from the FTX cryptocurrency exchange, leaving customers with billions of dollars in losses.” It further claims that individuals were coerced by a “weaponized DOJ” into retracting their statements as witnesses for Bankman-Fried”s defense.
Under federal procedural rules, requests for new trials based on grounds other than new evidence must be filed within 14 days of a conviction. Given that Bankman-Fried was found guilty over two years ago on multiple counts of fraud and conspiracy, he faces a significant challenge in proving the existence of substantial new evidence that warrants a retrial.
Currently, Bankman-Fried is serving a 25-year prison sentence related to the FTX collapse, which involved the misappropriation of approximately $10 billion in customer funds at both FTX and its affiliated trading firm, Alameda Research. He filed an appeal in September 2024, contending that he was effectively “presumed guilty” by various stakeholders, including the media and the court system.
Recent court records indicate that Bankman-Fried has taken steps to dismiss his appellate attorney, Jason Driscoll, and has been vocal on social media, alleging a concerted effort against him by the Biden administration. He has made attempts to align himself politically with former President Donald Trump, seeking a potential pardon, despite Trump”s recent statements indicating he would not consider clemency for Bankman-Fried, even as he granted clemency to other notable figures in the crypto space.
This ongoing legal saga not only highlights the personal plight of Bankman-Fried but also raises broader questions about regulatory oversight and the treatment of crypto executives in the wake of significant market failures.
