FTX founder Sam Bankman-Fried (SBF) has intensified efforts to overturn his fraud conviction by responding to the US government’s dismissal of his appeal.
His legal team argues that the trial was flawed due to suppressed evidence, and he deserves another chance under a different judge.
Sam Bankman-Fried Argues FTX Customers Lost Nothing
In a January 31 court filing, Bankman-Fried insisted that his trial was unfair, claiming judicial bias influenced the outcome.
SBF lawyers assert in the filing that FTX customers did not experience financial losses. They emphasize that creditors will recover more than their initial losses, pointing to FTX’s investments in firms like Anthropic, Solana, and Mysten Labs.
His appeal highlighted how an early investment in Anthropic is helping FTX creditors recover funds. Bankman-Fried bought a substantial stake in the AI company for approximately $500 million.
Since then, the company’s value has grown to $60 billion, significantly increasing the value of his investment. His defense presented this as proof of his sound financial decisions, asserting that the investments could have eventually restored FTX’s solvency.
“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 key aspect of his appeal is the claim that the court suppressed crucial evidence. He contends that he shaped FTX’s policies based on legal counsel.
However, the court blocked him from presenting proof that attorneys had approved his decisions.
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 yet only classified asset commingling as a crime after the exchange’s downfall.
The appeal further alleges that the law firm contacted prosecutors without informing Bankman-Fried, effectively setting the stage 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.
Additionally, SBF’s legal team disputes the court’s decision ordering him to repay over $11 billion, calling the ruling “unlawful” and “indefensible.” They argue that he has already surrendered all his assets and cannot possibly 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 comes amid speculation that his parents are exploring ways to secure a presidential pardon. Meanwhile, FTX creditors continue to await repayments as the bankruptcy process continues.
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