Judge Denies Sam Bankman-Fried New Trial Bid in FTX Case

TLDR

• Judge Lewis Kaplan denied Sam Bankman-Fried’s request for a new trial in federal court.
• The court rejected his claim that new evidence showed FTX was solvent.
• Judge Kaplan described his allegations as wildly conspiratorial and contradicted by the record.
• Sam Bankman-Fried withdrew the motion before the court issued its formal decision.
• A jury convicted him in November 2023 on seven fraud-related charges.

A federal judge in New York denied Sam Bankman-Fried’s request for a new trial and rejected his new evidence. The court ruled that his claims lacked merit and contradicted the record. The decision keeps his 25-year prison sentence in place while his appeal continues.

Sam Bankman-Fried Faces Sharp Rebuff From Court

U.S. District Judge Lewis Kaplan denied the motion in an order filed Tuesday in Manhattan. He rejected Sam Bankman-Fried’s claim that new evidence proved FTX remained solvent. Instead, he described the assertions as “baseless” and unsupported by facts.

Bankman-Fried had argued that prosecutors withheld information during his trial. He also claimed two former FTX executives feared retaliation if they testified. However, Judge Kaplan dismissed those claims and criticized the defense strategy.

In his order, Kaplan wrote that the defendant could have sought to compel testimony. “He could have obtained or at least sought to compel their testimony,” the judge stated. He added that the retaliation claim was “wildly conspiratorial and entirely contradicted by the record.”

Bankman-Fried withdrew the motion last week before the court ruled. He said he did not expect a “fair hearing” from Judge Kaplan. His appeal of the conviction remains pending before a higher court.

The former FTX CEO also requested that Judge Kaplan recuse himself from the case. However, the court did not grant that request. The judge continued to oversee proceedings related to post-trial motions.

Court Details Evidence Dispute and Prior Conviction

Sam Bankman-Fried filed the original motion for a new trial in February. He cited proposed testimony from FTX Digital Markets co-CEO Ryan Salame and former data science head Daniel Chapsky. He claimed both men feared government threats.

Judge Kaplan rejected that explanation in clear terms. He stated that the defendant never sought to compel their testimony. He also noted that one of the witnesses chose to testify against him.

A jury in New York convicted Bankman-Fried in November 2023. Jurors found him guilty on seven counts related to fraud against FTX customers, lenders, and investors. Prosecutors compared the scheme to a Ponzi structure and described it as one of the largest frauds in recent years.

The court later sentenced him to 25 years in federal prison. Salame received a 90-month sentence in 2024 after pleading guilty to criminal charges. Hedge fund Alameda Research, which Bankman-Fried founded, played a central role in the case.

Judge Kaplan also addressed the defendant’s public comments about new evidence. He referenced interviews with author Michael Lewis and commentator Tucker Carlson. “A fatal flaw of that spin is that Bankman-Fried’s so-called ‘facts’ have been seen before,” Kaplan wrote.

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