FTX Founder Sam Bankman-Fried Files Long-Shot Motion for New Trial
In a dramatic legal maneuver, Sam Bankman-Fried, the convicted co-founder of the collapsed cryptocurrency exchange FTX, has submitted a formal request for a new trial. The 33-year-old, currently serving a 25-year prison sentence, filed the motion pro se, representing himself without legal counsel. The document, dated February 5 but officially docketed on Tuesday in Manhattan federal court, argues that previously unavailable witnesses possess testimony that could refute the prosecution's central fraud allegations.
Separate from Ongoing Appeal Process
This new trial request is a distinct legal action from Bankman-Fried's formal appeal of his 2023 conviction, which is currently being reviewed by a three-judge panel at the appellate level. During a November hearing, the appellate judges appeared skeptical of arguments presented by his lawyer, Alexandra Shapiro, who claimed that trial judge rulings had unfairly tainted the jury's verdict. Shapiro has declined to comment on this separate motion for a retrial.
The filing was physically delivered to the court clerk by Bankman-Fried's mother, Barbara Fried, a retired Stanford Law professor. She revealed that her son had been preparing this brief for an extended period, stating, "He wanted to write it in his own voice." This personal touch underscores the defendant's direct involvement in what legal experts consider a highly unconventional and challenging legal strategy.
Claims of New Exculpatory Witnesses
At the heart of Bankman-Fried's motion is the assertion that two former FTX executives—Daniel Chapsky and Ryan Salame—could provide testimony contradicting the government's narrative about the exchange's financial health prior to its collapse. Notably, Salame has already pleaded guilty to related charges and received a 7½-year prison sentence, yet Bankman-Fried contends his testimony would be favorable to the defense.
The original trial concluded with a jury finding Bankman-Fried guilty on seven criminal counts, including fraud and conspiracy. Prosecutors successfully argued that he had illegally transferred billions of dollars from FTX customer accounts to Alameda Research, an affiliated hedge fund. Risky investments by Alameda ultimately contributed to FTX's catastrophic failure during the broader cryptocurrency market downturn of 2022.
Allegations of Judicial Prejudice
In his filing, Bankman-Fried has requested that a different judge be assigned to review his motion for a new trial, alleging that US District Judge Lewis Kaplan demonstrated "manifest prejudice" against him during the original proceedings. This accusation references several controversial rulings by Judge Kaplan, including blocking the defense from informing jurors that sufficient funds existed to repay investors despite FTX's collapse.
Furthermore, Judge Kaplan prevented Bankman-Fried's legal team from presenting evidence about legal advice the former CEO received prior to the exchange's failure. In an unusual procedural move, the judge conducted a three-hour hearing outside the jury's presence, placing Bankman-Fried on the stand to preview his proposed testimony before ultimately excluding it from the trial.
Broader Context and Political Dimensions
The motion represents the latest chapter in the stunning downfall of a figure once celebrated as the public face of cryptocurrency, with a personal fortune estimated at $26 billion at its peak. Beyond the courtroom, Bankman-Fried and his parents have reportedly been exploring avenues to secure a presidential pardon, potentially from former President Donald Trump, should he return to office.
Legal analysts characterize this new trial request as an extreme long shot, given the high burden of proof required to overturn a jury verdict and secure a retrial. However, it demonstrates Bankman-Fried's continued aggressive defense strategy even from his confinement at a federal prison south of Los Angeles. The case continues to serve as a landmark legal battle with significant implications for cryptocurrency regulation and white-collar criminal prosecution.
