Sam Bankman-Fried Files for Appeal

Sam Bankman-Fried, the former CEO of the failed cryptocurrency exchange FTX, filed an appeal on Friday seeking a new trial under a different judge.

Attorneys for Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX who was convicted last fall, filed an appeal on Friday seeking a new trial under a different judge. They argue that he was denied a fair trial.

Bankman-Fried, 32, was sentenced to 25 years in prison after a jury found him guilty in November on multiple federal counts of fraud and conspiracy. Prosecutors alleged that he orchestrated a years-long scheme to misappropriate funds from FTX customers’ accounts without their knowledge, deceived investors and lenders, and spent lavishly on real estate, private jet travel, and political donations.

Two years after FTX collapsed amid a liquidity crisis, Bankman-Fried contends that he did not receive a fair hearing. In an appeal brief, his lawyers stated, “He was presumed guilty before he was even charged.” They further argued that nearly two years after the collapse, “a very different picture is emerging—one confirming FTX was never insolvent, and in fact had assets worth billions to repay its customers.”

They claim that Judge Lewis Kaplan erred by “undermining the defense and defense counsel, even deriding the defendant’s own testimony during the preview hearing and in front of the jury.”

The appeal, similar to arguments made before Bankman-Fried’s sentencing earlier this year, focuses on the financial losses of FTX customers. His lawyers assert that the court prevented him from presenting evidence of solvency for FTX and its affiliated firm, Alameda Research, while allowing prosecutors to present evidence of losses.

“Throughout the proceedings, the district court made little pretense of objectivity or even-handedness… The judgment should be reversed, and the case remanded for a new trial before a different judge,” his attorneys stated.

Caroline Ellison Also Back in Court

When Sam Bankman-Fried went on trial in 2023, the prosecution’s key witness was Caroline Ellison, his former on-and-off girlfriend and the CEO of his trading firm. Her testimony played a significant role in his conviction and subsequent 25-year prison sentence. Now, Ellison is set to return to court—this time to request leniency as a judge prepares to sentence her for her involvement in the collapse of FTX.

On Tuesday night, Ellison’s attorneys filed a 67-page memorandum detailing her cooperation with prosecutors and FTX’s bankruptcy estate, asking that she avoid jail time. They also submitted nearly 40 letters of support from friends, family, and representatives of the FTX bankruptcy estate, including CEO John Ray.

The memorandum explores Ellison’s personal life and history with Bankman-Fried, attributing many of her decisions to what they describe as his manipulative behavior in their relationship. According to her attorneys, Bankman-Fried allegedly convinced her to obtain a prescription for the amphetamine Adderall, on which she became dependent.

“Reflecting now, Caroline believes that this amphetamine use made her more risk-seeking, more focused on the task at hand but less thoughtful and reflective,” the attorneys wrote. “It narrowed her focus to completing whatever task Mr. Bankman-Fried had assigned her and left her less inclined to step back and think about whether the situation made sense.”

Once valued at over $30 billion, the rapid failure of FTX in November 2022 drew significant public attention due to its high-profile figures and substantial financial losses. Much of the interest centered on the relationships among the close-knit group of friends in their late 20s and early 30s who ran the crypto enterprise, including Bankman-Fried and Ellison. By the time of the trial, several had turned against Bankman-Fried, whose response included leaking Ellison’s private diary to *The New York Times*.

As CEO of Alameda Research, Ellison admitted to prosecutors that she was aware of and participated in Bankman-Fried’s scheme to divert billions of dollars of customer funds for his own investments, including startups, political donations, and luxury real estate. In her sentencing memo, her lawyers argue that many of her poor decisions were influenced by her long-term relationship with Bankman-Fried, which began when they both worked at the trading firm Jane Street.

They dated intermittently, including while working together at FTX—a fact that Bankman-Fried reportedly tried to conceal from employees. According to Ellison’s attorneys, he proposed that they engage in a relationship while he was dating someone else, which she refused. Later, her attorneys note that Bankman-Fried excluded her from the public spotlight he enjoyed, telling her he did not want to be seen with her at high-profile events like the Met Gala and Super Bowl.

While the memorandum contains personal details about their relationship, Ellison’s attorneys also criticized the media’s focus on her private life. They argue that this attention led to invasions of privacy and harassment of Ellison’s family, including the disclosure of their home addresses online. Some letters included in the memo were filed under seal to protect the identities of those offering support.

In the memo, Ellison’s attorneys note that the Probation Department recommends a sentence of time served with three years of supervised release. They are requesting a non-custodial sentence, which would not involve jail time. Her sentencing hearing is scheduled for September 24, with prosecutors expected to file their response this week.