Sam Bankman-Fried, the former CEO of FTX, has filed a 102-page appeal to overturn his fraud conviction from November 2023. His legal team argues that the trial was unfairly conducted, accusing the judge of bias and restricting key evidence.Claims of Bias and Limited Defense
Bankman-Fried’s legal team argues that Judge Lewis Kaplan undermined the defense by making comments that influenced the jury’s perception. Additionally, they claim the judge limited their ability to present evidence, particularly about FTX’s alleged liquidity crisis, preventing the defense from painting a full picture of the situation.

Background on the Trial
The trial of Sam Bankman-Fried stems from the collapse of FTX, once a leading cryptocurrency exchange. In November 2022, FTX imploded, exposing an $8 billion hole in its accounts, allegedly due to the misuse of customer funds for investments, political contributions, and a lavish lifestyle. The fallout led to a federal investigation, and Bankman-Fried was charged with fraud, conspiracy, and money laundering. Several of his top advisers pleaded guilty and testified against him, resulting in his November 2023 conviction and a 25-year prison sentence.

The Liquidity Crisis Argument
The appeal centers on the assertion that FTX was not insolvent during its collapse. Instead, the defense maintains that FTX had billions of dollars tied up in illiquid assets, including stakes in companies like Anthropic and Solana. Bankman-Fried’s lawyers argue that these assets could have been used to reimburse customers, but the court didn’t allow this evidence to be presented.

Criticism of FTX’s Legal Counsel
Bankman-Fried’s appeal also targets the role of FTX’s outside legal counsel, Sullivan & Cromwell, alleging that the firm acted as an “arm of the prosecution” by providing extensive information to federal authorities. The defense argues this exceeded normal cooperation and further compromised Bankman-Fried’s ability to defend himself.

What’s Next?
The appeal seeks a new trial before a different judge, highlighting what Bankman-Fried’s legal team sees as an unfair advantage given to the government’s case. While overturning a federal conviction is difficult, this development has added a new chapter to the ongoing saga around FTX’s collapse. The crypto community will be keeping a close watch on how this unfolds.