- SBF was sentenced to 25 years in prison last week.
- The former FTX CEO plans to appeal.
- Allegations of collusion and unfair trial are being cited.
Sam Bankman-Fried (SBF) was handed a 25-year prison sentence on March 28 after being found guilty on seven counts of fraud, conspiracy, and money laundering. The sentence brought a degree of closure to the stunning collapse of FTX, which, at one point, was valued as a $32 billion company and one of the largest crypto exchanges globally.
Despite admitting his wrongdoings, SBF isn’t ready to accept his fate. In written responses provided to ABC News over the weekend, the former billionaire revealed his intention to appeal later this year.
SBF Plans to Appeal Case
While confessing to feeling “haunted, every day” and expressing no intention to cause harm through FTX’s collapse, SBF revealed to ABC News his plans to file an appeal, citing serious procedural flaws in the trial process that, in his view, unfairly tilted the case against him.
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Central to SBF’s claims is that the trial testimony “greatly misstated what actually happened,” and that his defense team was “not allowed to introduce crucial evidence or put on important witnesses.” Though hesitant to divulge specific details for fear of undermining his appeal, SBF referred to issues surrounding Sullivan Cromwell, the law firm representing the management team that took over FTX during bankruptcy.
SBF stated that Sullivan Cromwell had improperly collaborated with federal prosecutors, including sharing FTX documents and information that his own defense team was denied access to. The FTX founder claimed this alleged violation “infected the whole process” and is grounds for appealing the case.
Slim Chance of Successful Appeal
Chiming in SBF’s chances of a successful appeal, former federal prosecutor Sam Enzer told Laura Shin that he isn’t surprised SBF intends to challenge the conviction, but he doesn’t rate the chances of the conviction being overturned on claims of an unfair trial or errors in the legal process.
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Similarly, Enzer doesn’t see much likelihood of a significantly reduced sentence emerging from an appeal, which could drag on for 1-3 years through the court system. Enzer added that a 25-year sentence “strikes a balance that is fair, reasonable, and appropriate” given the enormous scale of fraud perpetrated.
On the Flipside
- In a fair trial, all parties must share evidence to support their respective cases during the discovery phase before the trial. No new evidence that hasn’t already been presented and shared during the discovery process must be introduced during the trial.
- FTX‘s collapse left its users with a $8 billion loss, while creditors are owed $1.7 billion.
- SBF is politically connected, having made donations to both main US parties.
Why This Matters
SBF’s determination to appeal his 25-year sentence on claims of an unfair trial and inability to present key evidence will be heavily scrutinized, potentially reshaping rules around what constitutes a fair prosecution in complex financial cases. Yet the saga has already sparked heated debates around appropriate punishments for white-collar crimes, especially those involving emerging technologies.
Find out the latest on reimbursing the FTX creditors here:
FTX Bankruptcy Estate Aims to Make Claimants Whole by 2024 End
Losses from crypto hacks appear to be trending down; find out why here:
Crypto Hacks Down 48% in March Amid Positive Industry Trend
