Court Rejects Sam Bankman-Fried’s Bid for Second Trial in FTX Fraud Case

KEY POINTS

• Federal Judge Lewis Kaplan rejected SBF’s request for a new trial this Tuesday
• The court described the filing as an attempt “to rescue his reputation” with “baseless” arguments
• Bankman-Fried claimed three ex-FTX leaders could demonstrate the platform remained solvent
• Kaplan noted the defendant had the opportunity to call these witnesses during the original proceedings but declined
• His appeal challenging the initial guilty verdict and 25-year prison term continues

The disgraced founder of the defunct cryptocurrency platform FTX, Sam Bankman-Fried, has seen his attempt to secure a retrial struck down by a federal court.

Judge Lewis Kaplan of the U.S. District Court, who oversaw the 2023 criminal proceedings and handed down a 25-year prison sentence in early 2024, issued his ruling this Tuesday in New York’s Southern District.

This past February, Bankman-Fried submitted the motion independently, bypassing his legal counsel. He simultaneously requested that Kaplan recuse himself from any further involvement, a request the judge promptly refused.

Just last week, Bankman-Fried attempted to retract the motion completely. He informed the court he believed he couldn’t receive “a fair hearing” under Kaplan’s oversight. The judge dismissed this withdrawal request as well.

Claims About Fresh Evidence

Bankman-Fried contended that three individuals who previously held executive positions at FTX could have offered testimony demonstrating the exchange maintained solvency. He specifically identified Ryan Salame, who led FTX’s operations in the Bahamas, along with Daniel Chapsky, the platform’s former chief data scientist.

He additionally referenced Nishad Singh, who served as FTX’s engineering director, alleging that Singh altered his testimony “following threats from the government.”

Judge Kaplan dismissed each of these contentions. He emphasized that none of these individuals qualified as “newly discovered” witnesses — Bankman-Fried had relationships with all three prior to trial and understood what testimony he expected from them.

Case History and Context

Salame entered a guilty plea for campaign finance violations and running an unlicensed money transmission operation. He received a sentence of seven and a half years imprisonment in May 2024.

Singh negotiated a cooperation agreement with federal prosecutors that allowed him to avoid incarceration, and he provided testimony against Bankman-Fried during the original trial.

The jury determined he unlawfully transferred billions in FTX customer deposits to his proprietary trading operation, Alameda Research, for speculative investments, ultimately precipitating FTX’s downfall.

Kaplan also addressed Bankman-Fried’s public relations efforts, referencing conversations with writer Michael Lewis and political commentator Tucker Carlson. He noted the purportedly new information “have been seen before. Many times.”

Bankman-Fried has petitioned President Donald Trump for a presidential pardon. Trump has indicated he has no intention of granting clemency.

Bankman-Fried is presently incarcerated at a federal correctional facility in Lompoc, California. His appeal contesting both the conviction and sentencing remains under consideration.

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