SBF appeals new trial, arguing that his arrest in 2022 was to prevent him from testifying before Congress by the Biden administration.

Nearly two years after being convicted of $8 billion encryption fraud, former FTX founder Sam Bankman-Fried (SBF) is actively seeking a second trial opportunity. On November 4, his appeal hearing will be held in Manhattan, where the defense team argues that the judge showed clear bias towards the prosecution during the trial, failed to maintain objectivity, and undermined SBF's defense and testimony.

The Core Argument of SBF's Appeal: Allegations of Judicial Bias and “Presumption of Guilt”

The legal team of SBF made a strong argument in court documents in September 2024, claiming that throughout the trial, SBF has been in a state of “presumed guilty.”

• Questions about the fairness of the trial: The lawyer pointed out that the district court “almost made no effort to disguise its objectivity or fairness” during the trial process and made several sharp comments, particularly belittling SBF and his defense attorney's testimony in front of the pre-trial hearing and the jury.
• Review of the trial process: This hearing occurred nearly two years after SBF was convicted of criminal fraud charges related to the “doomed” encryption exchange. Former FTX and Alameda Research executives, including Gary Wang, Nishad Singh, and Caroline Ellison, testified against SBF.

Key Hearing in Two Years: SBF's Legal Team Seeks to Overturn Conviction

SBF is currently serving a 25-year sentence in federal prison, and he is seeking to overturn his 2024 fraud conviction through the appeals process.

• Defense of intent to testify before Congress: SBF claimed in a post on his official Gettr account that his arrest in 2022 was a tactic by the “Biden anti-encryption SEC/DOJ” to prevent him from testifying in Congress the next day. He asserted that he was arrested a few weeks before the vote on the encryption bill.
• Uncertainty of the legal landscape: Although SBF raised these arguments, whether they can ultimately hold up in court remains to be seen.

Market Impact and Follow-up of Former Executives

The SBF case has dealt a significant blow to the reputation of the encryption industry, but his former colleagues have faced legal consequences one after another.

• Industry Impact: The collapse of FTX is one of the largest financial events in cryptocurrency history, resulting in an $8 billion loss for investors. SBF's legal battles are ongoing, keeping the regulatory environment under continuous scrutiny across the industry.
• Operational Advice: Although the legal developments of SBF are concerning, investors should focus on more constructive industry developments, such as new compliance products and technological innovations, rather than overly focusing on the follow-up procedures of a qualitatively determined fraud case.

Conclusion

Sam Bankman-Fried's efforts to seek a new trial represent an unfinished chapter in the history of encryption. His legal team is attempting to overturn the legitimacy of his fraud conviction, particularly focusing on issues of trial fairness. Regardless of the outcome, the FTX case has become an important historical footnote in cryptocurrency regulation and institutional trust building.