FTX Founder Sam Bankman‑Fried Pushes For New Trial In New York

Sam Bankman‑Fried, the co-founder and former chief executive of collapsed cryptocurrency exchange FTX, has filed a request for a new trial in New York on Tuesday, arguing that fresh witness testimony could undermine the government’s case against him. 

Bid To Revive FTX Trial

As reported by Bloomberg, the motion, dated February 5 and entered into the docket on Tuesday in Manhattan federal court, was submitted pro se, meaning Bankman‑Fried is acting on his own behalf rather than through legal counsel. 

In the filing, Bankman‑Fried contends that testimony from new witnesses could challenge key aspects of the prosecution’s narrative and potentially cast doubt on the verdict. He argues that this evidence was not previously presented and could materially affect the outcome of the case. 

The motion does not replace his ongoing appeal but represents an additional attempt to reopen the proceedings. The request follows comments Bankman‑Fried made earlier on Tuesday on social media in which he again disputed the legitimacy of FTX’s bankruptcy. 

Bankman‑Fried Denies Insolvency Issues

From prison, he has increasingly advanced the argument that the company’s collapse was driven by legal and financial maneuvering rather than criminal wrongdoing. 

He claimed that FTX was not insolvent and said he never authorized a bankruptcy filing, alleging instead that lawyers assumed control of the company and quickly initiated bankruptcy proceedings for their own financial benefit.

Bankman‑Fried was convicted on all seven counts he faced, including fraud, conspiracy, and money laundering, in the case United States v. Bankman‑Fried. 

On March 28, 2024, the court sentenced him to 25 years in federal prison and ordered him to forfeit approximately $11 billion, reflecting the scale of losses tied to the collapse of FTX.

Featured image from OpenArt, chart from TradingView.com