Lawyers acting on behalf of Sam Bankman-Fried (SBF), the founder of the now-defunct cryptocurrency exchange FTX, have submitted an appeal notice in an attempt to overturn his fraud conviction and 25-year prison sentence. The notice was filed in the Second Circuit Court of Appeals in Manhattan by Alexandra Shapiro, the head of SBF’s defense team. The appeal will be reviewed by a panel of three judges who will determine whether to reverse the decision made by U.S. District Judge Lewis Kaplan two weeks ago. In addition to the prison sentence, SBF was ordered to forfeit $11 billion for the extensive fraud committed at FTX and its sister hedge fund, Alameda Research. The appeal process could last for several months or even years as the defense team seeks to obtain a reduced prison term for SBF. However, legal experts believe it will be challenging to persuade the Second Circuit to overturn the District Court’s ruling, with some estimating the chances of success to be less than 10%. If the appeal is unsuccessful, SBF’s lawyers may take the case to the U.S. Supreme Court. Bankman-Fried was found guilty of all seven criminal charges in November 2023, which pertained to the misappropriation of approximately $10 billion of FTX customers’ funds, leading to the collapse of the exchange. Prosecutors alleged that Bankman-Fried used the funds for personal expenses, political donations, and repaying loans obtained by Alameda Research, while SBF claimed that the exchange suffered a liquidity crisis resulting in the loss of customers’ money. During the sentencing, Judge Lewis Kaplan expressed concern that SBF may engage in further unlawful activities and noted his lack of remorse for his crimes. The outcome of the appeal and whether Judge Kaplan’s decision will be upheld or overturned remains uncertain.
