17:05 ▪
5
min read ▪ by
Sam Bankman-Fried faces yet another setback in the United States. Federal prosecutors are asking a judge to deny his request for a new trial, saying the elements presented by the former FTX chief do not meet the required legal criteria. This new phase confirms one simple thing: despite the appeal, the criminal case of one of the biggest fallen figures in cryptocurrency remains firmly locked up.
In short
- US prosecutors want Sam Bankman-Fried’s request for a new trial to be denied.
- They believe that the witnesses cited by the defense do not really provide new evidence.
- The FTX case remains a stark reminder of the risks involved in managing cryptocurrencies.
New trial request already weakened
The core of the debate is quite clear. Sam Bankman-Fried claims that new testimony could weaken the prosecution’s case about the true state of the FTX crypto platform before its collapse. His defense specifically cites Ryan Salame and Daniel Chapsky, two former executives associated with the FTX ecosystem. The move comes as his parents reportedly campaigned for support among the Republican camp.
But the prosecution counters that these witnesses are not “new” within the meaning of US law. According to prosecutors, the defense knew about their existence before the trial in 2023. In other words, Bankman-Fried is trying to repackage already identified elements as “newly discovered evidence,” which complicates his case considerably.
From a legal point of view, this detail is very important. A new trial is not granted because the defense believes in retrospect that it could have made better use of certain witnesses. It must be shown that these elements were actually unavailable earlier and that they could have changed the outcome of the verdict. This is where SBF’s request seems to lose credibility.
Unchanged FTX Conviction weight
This setback comes in an already very unfavorable context for the former FTX boss. In November 2023, a jury found him guilty of seven counts related to fraud and conspiracy. In March 2024, he was sentenced to 25 years in prison for embezzling trillions of dollars in client funds at FTX and Alameda Research.
The important point for the crypto sector lies elsewhere. The Bankman-Fried case is no longer just about a platform that fell too quickly. He became a court symbol. US authorities want to show that the star crypto leader does not get any special treatment when internal management turns on the fraud. This logic also explains the current harshness of prosecutions. It’s continuity, not surprise.
Even his appeals process follows this line of tension. Bankman-Fried continues to challenge her conviction in the federal Court of Appeals for the Second Circuit. But between the appeal and the new trial attempt, his strategy looks mainly like a multi-front battle with little political or judicial room for a quick turnaround.
Even more damaged public image
Another dimension of the case is political. Speculations about a possible presidential pardon have been circulating for several months. They rounded up after public statements that were seen as favorable to Donald Trump and his line of cryptocurrencies. However, nothing concrete has emerged publicly and the route remains highly speculative.
This context weighs on his image. In the crypto world, Sam Bankman-Fried once embodied rapid success, aggressive lobbying and the promise of more sophisticated digital finance. Today, it mostly represents the opposite excess: opaque governance, confusion of client assets and internal stakes, followed by legal defense under permanent pressure.
There is a broader lesson here for the market. Big crypto scandals don’t die with company bankruptcy. They survive in the courts, in regulation and in the memory of investors. Each new SBF court setback is a reminder that restoring confidence takes much longer than a bull cycle.
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Fascinated by Bitcoin since 2017, Evariste has been constantly researching the topic. While his initial interest was in trading, he now actively seeks to understand all developments focused on cryptocurrencies. As an editor, he strives to consistently produce high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
