FTX founder Sam Bankman-Fried (SBF) intensifies efforts to overturn his fraud conviction after the US government dismissed his appeal.
His legal team argues that due to suppressed evidence, the trial was flawed, and he deserves a new opportunity under a different judge.
Sam Bankman-Fried Argues FTX Customers Didn't Suffer Losses
In a recent court filing, Bankman-Fried claims his trial was unfair, citing judicial bias that influenced the verdict.
SBF's lawyers state in the filing that FTX customers did not face financial losses. They stress that creditors will recover more than their initial losses, citing FTX's investments in companies like Anthropic, Solana, and Mysten Labs.
Bankman-Fried's appeal highlights how an early investment in Anthropic is aiding FTX creditors in recovering funds. He purchased a significant stake in the AI company for around $500 million.
The value of the company has since surged to $60 billion, significantly increasing his investment's worth. His defense uses this as evidence of his wise financial decisions, suggesting that the investments could have potentially restored FTX's financial stability.
"Consider Anthropic. Bankman-Fried invested early in Anthropic—purchasing a substantial share for approximately $500 million. The company is now worth $60 billion, earning a return multiples over. His investment was brilliant," his lawyers stated.
Another crucial point in his appeal is the allegation of crucial evidence being suppressed by the court. He argues that he based FTX's policies on legal advice.
However, the court prevented him from presenting evidence that his decisions were approved by attorneys.
His legal team also accuses Sullivan & Cromwell (S&C), FTX's legal representatives, of conflicts of interest. They claim S&C was deeply involved in FTX's operations before its collapse but only classified asset commingling as a crime post the exchange's downfall.
Adding to this, the appeal alleges that the law firm reached out to prosecutors without notifying Bankman-Fried, effectively paving the way for his indictment.
"Instead of recusing itself, S&C suddenly claimed this commingling was a crime after the November 2022 run on deposits. S&C then affirmatively reached out to prosecutors without notifying Bankman-Fried, its then-client-to invite this prosecution," the lawyers argued.
Furthermore, SBF's lawyers dispute the court's order for him to repay over $11 billion, labeling the ruling "unlawful" and "indefensible." They argue that he has already relinquished all his assets and cannot feasibly meet the imposed financial penalties.
"There is zero chance Bankman-Fried—who already turned over all his assets—could ever repay $11,020,000,000, or anything close," his lawyers wrote.
Sam Bankman-Fried’s latest appeal arises amidst rumors that his parents are exploring avenues for a presidential pardon. Meanwhile, FTX creditors continue to await repayments as the bankruptcy process unfolds.