Web 3 Journalist
Tim Hakki
Web 3 Journalist
Share
FTX founder Sam Bankman-Fried is legally challenging his 25-year sentence, filing a motion for a new trial on February 10.
The thirty-three-year-old cites “fresh testimony” that allegedly proves the defunct exchange was solvent.
The filing potentially throws a spanner in the liquidation process, with the claim that the Department of Justice suppressed critical evidence during the original proceedings.
Why Is Bankman-Fried Seeking a New FTX Trial Now?
It has been years since FTX’s November 2022 collapse wiped out $8 billion in customer funds.
Since then, self-custody has become a buzzword for retail investors, who have had to live through multiple bear markets while US regulators prepare comprehensive legislation to ensure it doesn’t happen again.
However, SBF isn’t done fighting. Serving a 25-year sentence, the disgraced mogul filed a pro se motion citing Rule 33 of the Federal Rules of Criminal Procedure.
Bankman-Fried argues that 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 contends the DOJ’s rapid prosecution missed the actual financial reality of FTX.US.
He maintains that the money was “always there,” a claim he intends to support with evidence that was allegedly unavailable during his initial defense.
What the New Motion Claims
The new filing specifically hinges on declarations from 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 shortfall.
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 the legal documents filed Feb. 10, Bankman-Fried alleges that prosecutors intimidated witnesses and that Judge Lewis Kaplan showed “manifest prejudice” by rushing the verdict. He is demanding a new judge for any retrial, framing the original proceedings as politically motivated “lawfare”.
While the industry has largely shifted toward a compliance-focused market structure to prevent another FTX-style meltdown, SBF argues the DoJ prevented him from showing the jury data that proved solvency.
Legal experts note that Rule 33 motions face an incredibly high bar, often viewed as a “Hail Mary” in federal appeals.
What This Means for Crypto Regulation
While a retrial is statistically unlikely, the motion keeps the FTX wounds fresh for active traders and victims awaiting restitution.
The persistence of the case highlights the long-term risks of offshore exchange failures.
Regulators are likely to use this continued legal drama to justify stricter oversight. We are already seeing similar crackdowns globally, such as when Venezuela’s anti-corruption investigation shut down exchanges in a massive sweep.
For the market, this serves as a stark reminder that the legal fallout from the 2022 crash is far from over, even as prices recover.
Discover:
