Sam Bankman-Fried Requests New Trial in FTX Crypto Fraud Case

Source: Slashdot

Background

Convicted former cryptocurrency mogul Sam Bankman‑Fried, who is serving a 25‑year prison sentence, filed a motion on Tuesday requesting a new federal trial. He argues that newly discovered evidence shows FTX had sufficient assets to repay all customer deposits, contradicting prosecutors’ claim that the company looted $8 billion of customer funds.

Request for a New Trial

Bankman‑Fried contends that evidence disclosed since his 2023 trial disproves the prosecution’s narrative that his hedge fund ran a multi‑billion‑dollar deficit of FTX customer funds. According to his motion, FTX faced only a short‑term liquidity crisis caused by a run on the exchange, not insolvency.

Allegations Against the Department of Justice

Bankman‑Fried also accuses the Department of Justice of coercing a guilty plea and cooperation deal from Nishad Singh—a close friend of his younger brother—who testified at trial as a cooperating witness. He claims Singh’s initial proffer to investigators “contradicted key parts of the government’s version of events,” but that “following threats from the government, Mr. Singh changed his proffers to fit the government’s narrative and pleaded guilty to charges carrying up to 75 years in prison, with a promise from the prosecution that it would recommend little or no jail time if it concluded that his assistance in prosecuting Mr. Bankman‑Fried was ‘substantial.’”

Relevant links

• Courthouse News report on the new trial request
• Details on Nishad Singh’s cooperation deal
• Singh’s testimony at trial

Recusal Request

Bankman‑Fried also asked that U.S. District Judge Lewis Kaplan, who presided over his 2023 trial, recuse himself from ruling on the motion, citing “manifest prejudice” demonstrated toward him.

Representation

Bankman‑Fried’s mother, Stanford Law School professor Barbara Fried, filed the self‑represented bid for a new trial on his behalf in Manhattan federal court.