Key highlights:

  • Sam Bankman-Fried has filed a petition in the US Supreme Court to overturn his fraud conviction
  • SBF’s lawyers claim that the trial court did not allow him to present evidence for customer repayments
  • The FTX founder has also filed for clemency, asking Donald Trump to pardon him

Sam Bankman-Fried, the founder of the now-bankrupt FTX, is making another attempt to escape the consequences of the crypto-exchange’s collapse. As per the latest reports, SBF has requested the US Supreme Court to overturn his fraud conviction and 25-year prison sentence. His lawyers argue that the case deserves another look.

Why is Sam Bankman-Fried appealing his FTX fraud conviction?

According to the latest petition filed by FTX founder Sam Bankman-Fried, SBF is trying to overturn his fraud conviction and 25-year prison sentence. His lawyers have requested the court to reconsider his conviction after reopening the case for further review.

SBF’s lawyers claim that the crypto exchange had enough assets to repay its customers. They also pointed out that the customers have already received their funds back. The lawyers’ argument is now concentrated on this fact, as they believe that the repayment should have been considered during the trial. They believe that it could have changed the outcome of the case.

However, the prosecutors have strongly disagreed with that argument. The Justice Department stated Sam Bankman-Fried was responsible for a scheme that involved misusing billions of dollars of customer funds. The department argued that the fact that the customers were repaid later does not change the alleged misuse of funds.

For context, FTX was once one of the largest crypto exchanges. But in November 2022, it collapsed after concerns emerged that customer funds were used to cover the losses of its sister company, Alameda Research. The exchange soon ran out of liquidity and filed for bankruptcy. Sam Bankman-Fried was later arrested and convicted of several charges, including fraud and conspiracy.

SBF’s Supreme Court bid faces tough odds

Notably, Sam Bankman-Fried’s appeal faces a major hurdle. This is mainly because the US Supreme Court usually accepts only a small number of the cases brought before it each year. This gives the FTX case only a slim chance of being taken up by the justices for review.

Still, SBF’s legal team remains optimistic that the court will reconsider his case. The lawyers argue that the trial court didn’t allow him to present key evidence about the collapsed exchange’s customer repayments. As noted by the team, the FTX customers have reportedly received their lost funds through the bankruptcy procedures.

SBF seeks clemency as legal battle continues

Interestingly, the Supreme Court appeal is not the only legal way Sam Bankman-Fried is using to challenge his conviction and prison sentence. Earlier this year, SBF applied to US President Donald Trump for clemency. The Office of the Pardon Attorney has still listed his request as pending. It is also important to note that the application was filed under the category of a pardon after completion of the sentence, even though SBF has more than two decades left to serve.

Despite the filing, clemency also remains challenging. Previously, Trump had stated that he would not consider pardoning Sam Bankman-Fried. The US Senate had also voted unanimously against granting him clemency. This suggests that Sam Bankman-Fried’s attempt to go free of the conviction is not that easy.