Sam Bankman-Fried (“SBF”) Fights Back, Accuses Judge of Bias in FTX Fraud Trial

Sam Bankman-Fried, the co-founder of failed cryptocurrency exchange FTX, is appealing his conviction, seeking a new trial and accusing the presiding judge of bias. According to a Bloomberg report, Bankman-Fried’s legal team has filed an appeal with the 2nd Circuit US Court of Appeals, asserting that US District Judge Lewis Kaplan showed favoritism toward the prosecution and prevented Bankman-Fried from mounting a proper defense.

In their 89-page legal filing, Bankman-Fried’s lawyers argue that the trial was unfair, describing it as a “sentence first, verdict afterward” scenario, claiming that the judgment was rushed. CNBC’s MacKenzie Sigalos reported that the defense disputes the prosecution’s narrative that Bankman-Fried misappropriated billions of dollars from FTX customer accounts. They highlighted that FTX’s bankruptcy estate, led by John Ray, has made progress in compensating customers, weakening the claim of stolen funds.

The appeal criticizes Judge Kaplan for making prejudicial remarks during the trial, mocking defense counsel, and showing visible disbelief towards Bankman-Fried’s testimony in front of the jury. The defense argues that Kaplan repeatedly “put a thumb on the scale” to favor the government, as Bloomberg noted. They further contend that Kaplan “improperly prodded” jurors to deliver a quick verdict by encouraging them to stay late on the first day of deliberations while offering rides home and meals. Bankman-Fried’s legal team believes these actions compromised the fairness of the trial.

According to CNBC, the defense is seeking to have the case assigned to a different judge, hoping for a retrial with a more impartial process. Bankman-Fried, who was convicted in November 2023 of orchestrating a multibillion-dollar fraud at FTX, is currently serving a 25-year prison sentence. His team remains adamant that he deserves another chance in court, arguing that he did not receive a fair trial due to judicial bias.

The case, titled US v. Bankman-Fried, 24-961, is now under review by the 2nd Circuit US Court of Appeals. While many defendants file appeals claiming legal errors during trial, it is rare to see a direct challenge against a judge’s conduct, as Bankman-Fried’s legal team has done in this case.