Sam Bankman-Fried calls for new trial from FTX citing new testimony

FTX founder Sam Bankman-Fried is legally challenging his 25-year prison sentence and filing a motion for a new trial on February 10.

The thirty-three-year-old cites “new evidence” that allegedly proves the defunct exchange was solvent.

The filing could potentially throw a spanner in the works of the liquidation process, with claims that the Justice Department suppressed critical evidence during the initial proceedings.

Why is Bankman-Fried now seeking a new FTX trial?

It’s been years since FTX’s collapse in November 2022 wiped out $8 billion in customer funds.

Since then, self-custody has become a buzzword for retail investors, who have had to weather several bear markets while U.S. regulators prepare comprehensive legislation to ensure it doesn’t happen again.

But SBF is not done fighting. Serving a 25-year prison sentence, the disgraced tycoon filed a lawsuit professional motion citing Rule 33 of the Federal Rules of Criminal Procedure.

Bankman-Fried claims his original conviction was a miscarriage of justice because key witnesses never took the stand.

While global enforcement efforts often successfully target financial malfeasance through standard audits, SBF asserts that the DOJ’s rapid prosecutions failed to take into account the true financial reality of FTX.US.

He claims the money was “still there,” a claim he intends to support with evidence that would not have been available during his initial defense.

What the new motion claims

The new filing relies specifically on statements by Daniel Chapsky, the former head of data science at FTX.US.

According to the motion, Chapsky’s data analysis contradicts the government’s narrative regarding the $8 billion deficit.

Bankman-Fried also points to potentially favorable testimony from former co-CEO Ryan Salame, who is currently serving a seven-and-a-half-year sentence.

In legal papers filed Feb. 10, Bankman-Fried alleges that prosecutors intimidated witnesses and that Judge Lewis Kaplan showed “clear prejudice” in rushing the verdict. He demands a new judge for any new trial, calling the initial proceedings a politically motivated “legal war.”

While the industry has largely moved toward a compliance-driven market structure to avoid another FTX-style collapse, SBF claims the DoJ blocked it from showing the jury data proving its solvency.

Legal experts note that Rule 33 motions face an incredibly high bar, often considered a “Hail Mary” in federal appeals.

What this means for crypto regulation

Although a retrial is statistically unlikely, the motion keeps FTX’s wounds fresh for active traders and victims awaiting restitution.

The persistence of this affair highlights the long-term risks of bankruptcy of offshore exchanges.

Regulators will likely use this ongoing legal drama to justify tighter oversight. We are already seeing similar crackdowns globally, such as when Venezuela’s anti-corruption investigation massively disrupted stock markets.

For the market, this is a stark reminder that the legal consequences of the 2022 crash are far from over, even if prices recover.

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