FTX co-founder and former CEO Sam Bankman-Fried has filed an appeal to overturn his fraud conviction, claiming that he did not get a fair trial and should be tried again before a new judge.
Bankman-Fried’s attorneys believe that FTX was never insolvent and had billions of dollars to reimburse clients despite the liquidity crisis that killed the platform. They argue that FTX’s legal consultants took over when market conditions rattled the exchange, forcing it into bankruptcy procedures, mismanaging it, and losing money in the process.
According to the paper, Bankman-Fried could never explain his side of the story, despite having the funds to repay consumers through illiquid investments. They contend that FTX experienced a liquidity problem rather than a solvency crisis.
FTX fell in November 2022, revealing evidence of major fraud and mismanagement. Bankman-Fried was arrested shortly thereafter and convicted of fraud in November. He will serve 25 years in prison.
Bankman-Fried and his staff criminally mishandled the company, using consumer deposits to make dangerous investments through sibling investment firm Alameda Research, resulting in a fast collapse.
