Defense lawyers challenge claims of insolvency while presidential pardon rumors circulate in digital asset circles.
Lawyers for Sam Bankman-Fried, the co-founder of FTX, will appear before the US Court of Appeals for the Second Circuit on Tuesday, seeking a new trial to overturn his 25-year prison sentence for fraud.
The appeal centers on claims of trial bias, with Bankman-Fried’s legal team demanding a retrial with a new judge. They accuse US District Judge Lewis Kaplan of mockery and siding with prosecutors during the original proceedings.
Bankman-Fried’s defense argues that FTX was never truly insolvent, blaming bankruptcy lawyers for an unnecessary Chapter 11 filing that distorted the case narrative. The appeal alleges that FTX’s new management pressured for a quick conviction during the bankruptcy proceedings.
FTX collapsed in 2022 and entered bankruptcy, with new management now focused on asset recovery. The federal appeals court will review arguments for overturning both Bankman-Fried’s conviction and sentence.
Speculation has emerged in crypto markets about potential presidential intervention, with discussions of a possible pardon for Bankman-Fried under the current administration.
