New hearing in the Bankman-Fried case: defense challenges the fairness of the verdict

The legal team of FTX founder has initiated an appeal, challenging the legitimacy of the trial that resulted in a 25-year sentence and an $11 billion restitution order. According to the defense, the proceedings were conducted under media pressure and judicial bias.

Allegations of Procedural Violations

The legal team claims that Judge Lewis Kaplan systematically violated principles of judicial impartiality. The appellate materials include evidence that the judge repeatedly demonstrated hostility towards the defendant’s testimony, and his actions created pressure on the jury.

The defense points to specific episodes of bias: according to lawyers, Kaplan provided material incentives to the jury(dinners, transportation)to expedite verdicts, which contradicts the principles of fair trial. The judge also allegedly obstructed Bankman-Fried from presenting a key defense argument about his intentions.

Main Thesis of the Defense

The lawyers insist that FTX’s founder did not plan to mislead clients. According to their version, Bankman-Fried believed that the company had sufficient assets to fully compensate investors. The judge allegedly prohibited the defendant from elaborately explaining this position to the jury, depriving the court of a critically important piece of evidence.

The Prosecution’s Version and the Verdict

In 2023, the jury delivered a guilty verdict on seven counts, including fraud and conspiracy. According to prosecutors, billions of dollars of clients’ funds were redirected to Alameda Research and spent on investments, charitable donations, and real estate.

Prosecution witnesses — former co-founder of the exchange Gary Wang, engineer Nishad Singh, and former Alameda CEO Caroline Ellison — testified against Bankman-Fried after admitting their guilt. Ellison detailed the mechanism of creating fake balances to hide liabilities and embezzling client funds.

Who Is Leading the Appeal

The appeal is led by prominent attorney Alexandra Shapiro, who previously achieved retrials in several high-profile financial fraud cases. Bankman-Fried’s team demands a new trial with a different judge.

While in a California facility, the FTX founder cannot attend hearings but continues to fight for a review of his case. This year, Bankman-Fried also initiated a petition for clemency with the U.S. president, characterizing his situation as a result of prosecutorial abuse during the Biden administration.