Sam Bankman-Fried, the former CEO and founder of the now-defunct cryptocurrency exchange FTX, is pursuing a new trial in hopes of overturning his fraud conviction. His legal team is scheduled to appear before the 2nd U.S. Circuit Court of Appeals on November 4, arguing that he was denied a fair trial during the original proceedings. Central to their appeal is the claim that key evidence—specifically, financial data suggesting FTX was solvent at the time of its collapse—was unjustly excluded from the courtroom.
Bankman-Fried, who was convicted in November 2023 on seven counts, including wire fraud and conspiracy, has consistently maintained his innocence. He contends that FTX’s downfall was not the result of intentional criminal activity, but rather due to a combination of poor decision-making, market volatility, and a loss of confidence among investors and customers. At the time of sentencing, the 33-year-old was given a 25-year prison term, with a projected release date in 2044.
One of the key arguments presented by his defense attorneys is that Judge Lewis Kaplan, who presided over the original trial, improperly blocked the introduction of evidence that could have demonstrated FTX’s ability to fulfill customer withdrawals. This, they argue, would have significantly influenced the jury’s perception of whether fraud had occurred.
Adding to the appeal’s momentum, Bankman-Fried recently released a 15-page document through his official X (formerly Twitter) account, titled “FTX: Where Did The Money Go?” In it, he claims that the crypto exchange still possessed billions of dollars in assets at the time of its bankruptcy filing in late 2022. The report highlights holdings in major tech companies such as Robinhood, SpaceX, and the AI startup Anthropic, suggesting that FTX’s financial position was misrepresented during the trial.
The document also accuses prominent law firm Sullivan & Cromwell and current FTX CEO John Ray III of orchestrating a hostile takeover and intentionally mismanaging the bankruptcy proceedings. Bankman-Fried alleges that their actions sidelined legitimate recovery efforts in favor of maximizing legal fees and securing control over the company. These claims form a pivotal part of his legal team’s appeal strategy, as they attempt to discredit the prevailing narrative that customer funds were irretrievably lost.
Despite these efforts, the odds remain heavily stacked against Bankman-Fried. The scale of the FTX collapse—which wiped out billions in customer and investor funds—has cemented its place as one of the most catastrophic failures in cryptocurrency history. Moreover, damning testimonies from former top executives, including Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, FTX’s co-founder, have bolstered the prosecution’s case, portraying a pattern of deception and misuse of customer deposits.
In light of these developments, some observers believe that Bankman-Fried’s ultimate goal may not rest solely on legal appeals. Reports suggest he is also exploring the possibility of a presidential pardon, particularly from Donald Trump, should he win re-election. This speculation intensified following Trump’s previous pardons of high-profile crypto figures such as Silk Road founder Ross Ulbricht and, more recently, former Binance CEO Changpeng Zhao. While no official requests have been filed, the idea underscores Bankman-Fried’s multifaceted approach to seeking release.
Meanwhile, public opinion about Bankman-Fried remains divided. Some view him as a reckless entrepreneur who gambled with other people’s money, while others see him as a scapegoat for a broader systemic breakdown in the unregulated crypto industry. The FTX saga has also reignited discussions about the need for tighter oversight, better risk management protocols, and more transparency across digital asset platforms.
Legal analysts have noted that appeals based on evidentiary exclusions face a high bar for success. To overturn a conviction, the defense must prove that the exclusion significantly affected the outcome of the trial. In this case, the court will need to consider whether the allegedly omitted evidence about FTX’s solvency would have materially altered the jury’s verdict.
In parallel, the bankruptcy proceedings for FTX continue. Under the leadership of John Ray III, efforts to recover and redistribute assets to creditors and customers are ongoing. So far, billions in assets have been identified, including crypto holdings and equity stakes. However, the timeline for full resolution remains uncertain, and it’s unclear how much impacted users will ultimately recover.
The broader crypto community is also watching this case closely, as it may set precedents for how similar fraud cases are handled moving forward. With regulatory scrutiny intensifying worldwide, the outcome of Bankman-Fried’s appeal could influence how future legal frameworks are shaped around digital assets and financial responsibility.
As the November 4 appeal date approaches, Bankman-Fried’s legal team is expected to sharpen its arguments, emphasizing procedural errors, judicial bias, and misrepresented facts. Whether these efforts will be enough to sway the appellate court remains to be seen, but the case is far from over. For now, the man once hailed as the “King of Crypto” continues to fight for his freedom from a federal prison cell, hoping to rewrite the final chapter of one of the most dramatic collapses in financial history.