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SBF Seeks Retrial, Claims FTX Losses False

SBF Seeks Retrial, Claims FTX Losses False

Cryptocurrency News

Sam Bankman-Fried (SBF), founder of the collapsed FTX exchange, is escalating his efforts to overturn his fraud conviction. His legal team has responded to the government's dismissal of his initial appeal, arguing for a new trial before a different judge.

Key Arguments in SBF's Appeal

SBF's appeal centers on several key claims:

  • Judicial Bias: The defense alleges the trial was unfairly influenced by judicial bias.
  • No FTX Customer Losses: A surprising claim asserts that FTX customers did not experience net financial losses due to the exchange's investments, such as a significant stake in Anthropic (valued at $60 billion, up from a $500 million investment).
  • Suppressed Evidence: The defense argues the court improperly suppressed evidence demonstrating that SBF's actions were based on legal counsel's advice.
  • Conflict of Interest Allegations: SBF's legal team accuses Sullivan & Cromwell (S&C), FTX's legal representatives, of a conflict of interest, claiming their involvement in FTX's operations before its collapse influenced the prosecution.
  • $11 Billion Restitution: The appeal challenges the court's order for SBF to repay over $11 billion, arguing it's unfeasible given his current financial state.

Anthropic Investment as a Central Argument

A core component of SBF's defense highlights FTX's early investment in Anthropic. The defense argues this investment, which has dramatically increased in value, demonstrates sound financial decisions and potentially would have restored FTX's solvency.

Sullivan & Cromwell's Role Under Scrutiny

The appeal sharply criticizes Sullivan & Cromwell (S&C), asserting their actions constitute a conflict of interest. The defense argues that S&C's late classification of asset commingling as a crime, and their contact with prosecutors without informing SBF, contributed to his indictment.

Implications and Next Steps

SBF's renewed appeal comes as his parents reportedly explore options for a presidential pardon. Meanwhile, FTX creditors continue to await repayments amid the ongoing bankruptcy proceedings. The outcome of this appeal will significantly impact the future of the FTX case and the ongoing legal battles surrounding the cryptocurrency exchange's collapse.

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