Sam Bankman-Fried’s legal team is set to appear before the 2nd US Circuit Court of Appeals today, November 4, to argue that his 2023 fraud and conspiracy conviction should be overturned. The defense is centering its appeal on the claim that the trial judge, Lewis Kaplan, improperly blocked crucial evidence intended to show that the bankrupt FTX exchange had sufficient assets to cover customer withdrawals, an argument they contend would have significantly influenced the jury’s decision, a report by Reuters said.
The former FTX CEO, who is currently serving a 25-year prison sentence, has consistently denied deliberate wrongdoing since his conviction on seven counts, framing FTX’s collapse as a result of mismanagement and market panic, not outright theft. His legal team maintains that his trial was unfair, insisting the jury was presented with a “false narrative” that customer funds were permanently lost.
Just days ago, Bankman-Fried’s official X account published a 15-page document titled “FTX: Where Did The Money Go?,” attempting to reframe the narrative by claiming FTX was never insolvent. The document argued that the exchange held billions in crypto and high-value stakes in companies like Anthropic and Robinhood at the time of its 2022 bankruptcy filing.
It also reiterated claims that the Chapter 11 process was manipulated by the current CEO, John Ray III, and legal counsel Sullivan & Cromwell, accusing them of seizing control and prioritizing legal fees over customer recovery.
While the appeal heavily relies on these solvency arguments, it faces significant challenges. The sheer scale of the FTX collapse—one of the largest in crypto history—and the damaging testimonies from former executives, including Caroline Ellison and Gary Wang, weigh against the defense.
Meanwhile, the disgraced CEO is also reportedly exploring alternative routes to freedom, including a potential pardon from U.S. President Donald Trump, following the recent pardoning of former Binance CEO Changpeng Zhao. For now, Bankman-Fried continues his 25-year sentence, with his ultimate release date dependent on the outcome of this appeal and any future clemency efforts.
