Sam Bankman-Fried Fights Back: Inside the FTX Founder’s Appeal
Sam Bankman-Fried, widely known as SBF, has officially launched an appeal to overturn his 25-year prison sentence. The former FTX founder argues that he was “presumed guilty” before his trial even began. Here’s how the case unfolded and what’s at stake as the appeal begins to move forward.
Was SBF Presumed Guilty Before Trial?
As the appeal process begins in New York this week, SBF’s defense team claims that he was unfairly treated from the start. Alexandra Shapiro, SBF’s attorney, is spearheading the case and highlighting major procedural issues. “In the United States, people accused of crimes are presumed innocent until proven guilty beyond a reasonable doubt. That’s how it’s supposed to work,” she stated in a legal brief filed in September 2024.
Shapiro further alleges that the court blocked key evidence proving FTX’s solvency and allowed biased treatment during the original trial. According to the defense, there was “a rush to judgement” following FTX’s collapse during the 2022 crypto market crash. This sentiment echoes SBF’s persistent claim that he acted in “good faith” and that FTX, along with Alameda Research, were solvent when liquidity issues arose.
FTX’s Collapse: What Led to the Fraud Charges?
The downfall of FTX became one of the most high-profile failures in cryptocurrency history. Following the 2022 crypto market crash, FTX and Alameda Research faced financial turmoil. Prosecutors argued SBF knowingly misled customers and investors by secretly using client funds to prop up Alameda’s high-risk ventures, fund real estate purchases, and make political donations.
Former FTX executives testified that SBF authorized deceptive balance sheets and concealed Alameda’s massive debt from the public. However, the defense maintains that FTX faced a liquidity crunch due to a sudden surge in customer withdrawals, not insolvency or criminal activity. Shapiro adds that the trial excluded evidence that could have changed the jury’s view.
Could There Be a New Trial?
If the Second Circuit Court sides with SBF, a new trial could be triggered—a move that might reset the narrative around one of crypto’s most controversial figures. According to Shapiro, had the defense been able to present all the evidence, it would have shown sufficient assets to cover customer deposits during FTX’s downfall.
While SBF continues to insist that FTX could have made its customers whole, the government argues the exchange was operating as a fraudulent scheme from the start. The Second Circuit’s decision—which is expected to take months—will determine whether SBF gets a second chance to defend his reputation in court.
The Broader Impact of the FTX Case
The FTX scandal has sent shockwaves across the cryptocurrency sector, raising questions about regulatory oversight and investor protections. It has also highlighted the need for better safeguards to ensure transparency in crypto exchanges. For those navigating the complexities of cryptocurrency trading, staying informed is critical.
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What’s Next?
For now, the crypto world remains divided over Bankman-Fried’s claims. As the Second Circuit deliberates his case, all eyes will be on whether the former FTX founder can successfully challenge his conviction and rewrite his legacy in the volatile realm of cryptocurrency.
