Sam Bankman-Fried Seeks New Trial From Prison

FTX co-founder Sam Bankman-Fried, who is currently serving a 25-year federal prison sentence for fraud related to the collapse of the cryptocurrency exchange, has filed a long-shot request for a new trial.

The move signals a renewed effort by the disgraced crypto executive to challenge his conviction, even as the legal and political odds remain firmly stacked against him.

Bankman-Fried’s conviction followed one of the most dramatic corporate failures in financial history, as FTX imploded in late 2022 and wiped out billions of dollars in customer funds. Prosecutors successfully argued that he misused customer deposits and misled investors. Now, from behind bars, Bankman-Fried is attempting to reopen the case by questioning the foundation of the prosecution itself.

The statement reignited debate within the crypto community, drawing widespread attention across financial media in a post also shared by Bloomberg Business, underscoring how Bankman-Fried continues to challenge the official narrative surrounding FTX’s collapse

Motion To Reconsider The FTX Fraud Case

Court filings show that Bankman-Fried has submitted a motion to reconsider the fraud case involving FTX, arguing that the trial was fundamentally flawed. His request centers on claims that crucial financial evidence was excluded and that jurors were presented with a distorted picture of the exchange’s financial condition.

According to Bankman-Fried, the court prevented him from introducing documents that would have demonstrated FTX’s solvency at the time of its collapse. He maintains that liquidity issues were temporary and manageable, and that the company held sufficient assets to meet its obligations if allowed to operate without outside interference. The motion marks a clear attempt to undermine the prosecution’s core argument that FTX was insolvent and irreparably broken.

SBF Claims FTX Was Never Bankrupt

The legal maneuver was quickly followed by a public statement on Bankman-Fried’s X account, where he asserted that FTX was never actually bankrupt. He claimed that the bankruptcy filing was falsely submitted by lawyers who took control of the company shortly after his removal.

“But FTX was never bankrupt. I never filed for it,” Bankman-Fried wrote. “The lawyers took over the company and 4 hours later they filed a bogus bankruptcy so they could pilfer it for money.”

Bankman-Fried argues that the bankruptcy process itself caused irreversible damage to the exchange, freezing assets and destroying value that could have been used to repay customers. He insists that the decision to file was rushed and driven by outside interests rather than financial necessity.

Political Framing Of The Prosecution Emerges

In a notable shift, Bankman-Fried is now framing his conviction as politically motivated. He claims that the Biden administration targeted him after he stopped donating to Democratic candidates and began supporting Republicans. According to Bankman-Fried, his political realignment coincided with increased regulatory scrutiny and prosecutorial pressure.

He also points to his vocal criticism of SEC Chair Gary Gensler as a key factor, arguing that his opposition to the agency’s regulatory approach toward crypto made him a convenient target. By recasting his case as political persecution rather than financial misconduct, Bankman-Fried appears to be attempting to reframe public perception of his downfall.

Solvency Claims And Blocked Evidence At Trial

A central pillar of Bankman-Fried’s argument is his claim that FTX was solvent throughout the crisis. He maintains that the exchange had more assets than liabilities and that customers would have been made whole if operations were allowed to continue. According to his account, the trial court blocked him from presenting internal balance sheets and accounting data that would have supported this position.

He argues that the exclusion of this evidence denied the jury the ability to fully evaluate FTX’s financial state. In his view, the prosecution relied on selective snapshots rather than a comprehensive assessment of the company’s books. These claims were reiterated in a detailed post on his personal X account, where he continues to push back against the fraud narrative

Critics, however, argue that solvency on paper does not negate misuse of customer funds, a point prosecutors emphasized throughout the trial. Still, Bankman-Fried’s filings suggest he believes these distinctions were not adequately explored in court.

Seeking Support From Trump Allies

As he presses forward with his legal challenge, Bankman-Fried is also seeking support from allies of former President Donald Trump. His outreach to Republican figures reflects a broader strategy to align his case with opposition to the current administration’s regulatory posture toward cryptocurrency.

By positioning himself as a victim of political targeting, Bankman-Fried appears to be courting sympathy from conservatives who have criticized federal overreach and aggressive enforcement actions against the crypto industry. Whether this approach will influence legal outcomes remains uncertain, but it underscores how the former FTX chief is blending legal appeals with political messaging in an effort to revive his defense.

For now, the request for a new trial faces long odds, as courts rarely overturn verdicts in high-profile fraud cases without compelling new evidence. Still, Bankman-Fried’s latest filings and public statements suggest he is far from conceding defeat, even as he serves out one of the most severe sentences ever handed down in a crypto-related case.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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