Federal Prosecutors Push Back Against Sam Bankman-Fried's New Trial Request: Report
Government attorneys argue that statements from two ex-FTX executives referenced by defense lawyers don't constitute newly discovered evidence, according to Bloomberg.
On Thursday, Bloomberg reported that federal prosecutors in the United States have called on a judge to dismiss Sam Bankman-Fried's petition for a new criminal trial, maintaining that the former cryptocurrency exchange executive has not satisfied the necessary legal criteria for granting a retrial.
Based on the report's reference to court filings, government prosecutors contended that Bankman-Fried's assertion regarding new witnesses potentially weakening the prosecution's case fails to satisfy the legal threshold necessary for granting a new trial.
Government attorneys reportedly maintained that statements referenced by Bankman-Fried from former FTX executives Ryan Salame and Daniel Chapsky could not be considered newly discovered evidence, given that both individuals were already known to defense attorneys prior to the trial that took place in 2023.
The government's filing represents the most recent procedural development in Bankman-Fried's attempt to reverse his criminal conviction connected to the downfall of FTX, the cryptocurrency trading platform whose spectacular failure sparked one of the most significant scandals in the digital asset industry's history.
Court has yet to rule on retrial request
In February, Bankman-Fried submitted the motion requesting a new trial, contending that statements from former company executives could cast doubt on the prosecution's portrayal of FTX's financial situation prior to its dramatic collapse.
Defense attorneys contended that statements from Salame and Chapsky had the potential to undermine the government's version of events that was presented to jury members during the original trial proceedings. Subsequently, Judge Kaplan issued an order requiring government prosecutors to file their response to the defense motion no later than March 11.
The presiding judge has not yet issued a ruling on whether the motion will be allowed to move forward. In a separate legal effort, Bankman-Fried is continuing to challenge his conviction through the US Court of Appeals for the Second Circuit.
In November 2023, a jury found Bankman-Fried guilty on seven criminal counts of fraud and conspiracy charges stemming from the improper handling of customer funds at FTX and its affiliated trading operation, Alameda Research. Subsequently, he received a prison sentence of 25 years.
Pardon speculation runs alongside court challenges
The legal challenges being pursued by Bankman-Fried have proceeded in parallel with widespread public speculation regarding whether he may be attempting to secure a presidential pardon.
On Feb. 1, the disgraced former FTX CEO expressed approval of US President Donald Trump's position on cryptocurrency through posts on social media platforms, intensifying questions about whether his actions were designed to cultivate political favor while simultaneously pursuing legal remedies through the court system.
However, that speculation has not materialized into any concrete public developments thus far. On Jan. 9, Trump allegedly informed The New York Times that he had no plans to grant a pardon to Bankman-Fried, which means that his appellate challenge and retrial motion remain his primary legal pathways for attempting to reverse his criminal conviction.