SKN | Judge Rejects Sam Bankman-Fried’s Bid for New Trial in FTX Case

A U.S. federal judge has denied a motion for a new trial filed by former FTX CEO Sam Bankman-Fried, dismissing his claims of newly discovered evidence and calling the effort an attempt to restore his public image.

Judge Lewis Kaplan, who presided over the original case, ruled that the arguments presented were unfounded and did not meet the legal threshold required to justify a retrial.

Judge Criticizes Motive Behind Filing

In his written order, Kaplan stated that the motion appeared to be part of a broader strategy to “rescue his reputation,” noting that such efforts had been contemplated even before formal charges were filed following the collapse of FTX.

The judge also rejected Bankman-Fried’s attempt to withdraw the motion after filing it, reinforcing the court’s stance that the claims lacked merit.

Claims of New Evidence Rejected

Bankman-Fried argued that testimony from former executives could challenge the prosecution’s narrative that FTX was insolvent. However, the court found that these individuals were not “new” witnesses, as the defendant had prior knowledge of them and their potential testimony before the original trial.

The ruling emphasized that the defense had ample opportunity to call these witnesses during the proceedings but chose not to do so, undermining the credibility of the retrial request.

Allegations of Witness Pressure Dismissed

The former CEO also claimed that testimony from key witness Nishad Singh was influenced by government pressure. Judge Kaplan dismissed these assertions as “wildly conspiratorial,” stating they were unsupported by evidence and contradicted by the trial record.

Other figures mentioned in the motion included Ryan Salame and Daniel Chapsky, both of whom were known to the defense prior to trial. Salame had previously pleaded guilty to separate charges and received a prison sentence in 2024.

Background: Conviction and Sentencing

Bankman-Fried was convicted on seven criminal counts, including fraud and money laundering, related to the misuse of billions of dollars in customer funds. Prosecutors demonstrated that funds from FTX were diverted to Alameda Research, where they were used for high-risk trading activities that contributed to the exchange’s collapse.

He was sentenced to 25 years in prison in early 2024 and is currently serving his sentence in a federal facility in California.

Legal and Industry Implications

The decision reinforces the finality of one of the most high-profile cases in crypto history. It also underscores the judiciary’s strict standards for granting new trials, particularly in cases involving complex financial misconduct.

For the broader crypto industry, the ruling serves as a reminder of the increasing legal scrutiny facing digital asset firms and their executives, especially in cases involving investor protection and financial transparency.