SBF Challenges Fraud Verdict

FTX founder Sam Bankman-Fried (SBF) is ramping up efforts to overturn his fraud conviction, challenging the government's dismissal of his appeal.

His legal team argues the trial was compromised by judicial bias and suppressed evidence, warranting a retrial under a different judge.

SBF’s Defense Argues that FTX Customers Were Not Financially Harmed

In a 31 January filing, they contend that FTX customers did not suffer financial losses, emphasizing that creditors stand to recover more than their initial claims.

The defense highlights SBF’s $500 million investment in Anthropic, now valued at $60 billion, as evidence of his strategic financial decisions.

They argue these investments could have restored FTX’s solvency, reframing the narrative around his intent and responsibility.

His lawyers stated:

“Consider Anthropic. Bankman-Fried invested early in Anthropic—purchasing a substantial share for approximately $500 million. The company is now worth $60 billion, earning a return multiples over. His investment was brilliant.”

SBF’s appeal also hinges on allegations that the court suppressed critical evidence.

He argues that FTX’s policies were shaped with legal counsel, yet he was barred from presenting proof that attorneys had approved his decisions.

His legal team further accuses Sullivan & Cromwell (S&C), FTX’s former legal advisors, of conflicts of interest, claiming the firm played a central role in FTX’s operations before its collapse but only labelled asset commingling as criminal afterward.

The appeal asserts that S&C secretly coordinated with prosecutors, setting the stage for his indictment.

The lawyers argued:

“Instead of recusing itself, S&C suddenly claimed this commingling was a crime after the November 2022 run on deposits. S&C then affirmatively reached out to prosecutors without notifying Bankman-Fried, its then-client-to invite this prosecution.”

Additionally, SBF’s lawyers challenge the court’s $11 billion repayment order, calling it “unlawful” and arguing that he has already forfeited all his assets.

His lawyers wrote:

“There is zero chance Bankman-Fried—who already turned over all his assets—could ever repay $11,020,000,000, or anything close.”

His latest legal maneuver comes amidst speculation that his parents are seeking a presidential pardon on his behalf.

Meanwhile, FTX creditors remain in limbo as bankruptcy proceedings drag on.

Is SBF simply refusing to accept responsibility, or does his appeal raise valid concerns?