Former FTX CEO Sam “SBF” Bankman-Fried, who is serving a 25-year sentence for seven crimes, will take the next step in his appeal procedure with a hearing scheduled for November. According to a recent announcement before the US Court of Appeal for the Second Circuit, the appeal of Bankman-Fried for arguments was calendared on November 4. This court proceeding will mark the first significant movement in the criminal proceedings of the former CEO since his transfer from a facility in New York City to California in March.
The hearing in the Second Circuit was expected, as Bankman-Fried’s lawyers had submitted an appeal in April 2024 against his conviction in 2023 and the subsequent 25-year prison sentence. In their filing in September 2024, the legal team of Bankman-Fried argued that the former CEO was “never considered innocent” and also claimed that the prosecutors had spun a “wrong story” about the use of FTX user funds. The case of Bankman-Fried contains some of the most significant criminal charges against a high-profile cryptocurrency figure. Should the Court of Appeal reverse the judgment of the lower court, it could mean a new trial or negotiation for SBF.
Background and Charges
FTX had serious liquidity problems, with many employees on the Bahamas, and reported bankruptcy in November 2022. Some of the stock market’s C-Suite executives were charged with crimes after the collapse, but Bankman-Fried was the only one who maintained a not-guilty plea, leading to a highly publicized trial in New York. Although he was initially allowed to stay in his parents’ house in California after his extradition from the Bahamas, his bail was revoked in August 2023 after he attempted to intimidate witnesses in his case.
Bankman-Fried has been incarcerated at the Federal Correctional Institution in Terminal Island, California, since March. According to the US Bureau of Prisons, his expected release date is October 25, 2044. The case has drawn significant attention due to its implications for the cryptocurrency industry and the severity of the charges against Bankman-Fried.
Related Cases and Sentencing
Following Bankman-Fried’s trial and sentencing, the US District Court for the Southern District of New York held sentencing hearings for four of SBF’s associates: former Alameda Research CEO Caroline Ellison (SBF’s ex-girlfriend), former FTX Digital Markets CO-CEO Ryan Salame, FTX co-founder Gary Wang, and former FTX Engineering Director Nishad Singh. Ellison was sentenced to two years in prison in September 2024, with her release date set for March 2026. Salame initially pleaded guilty in 2023 but later attempted to vacate his plea in response to prosecutors’ actions against his partner, Michelle Bond. Ultimately, he was sentenced to more than seven years in prison, which he reported in October 2024.
Potential for Presidential Pardon
There are rumors that Bankman-Fried could seek a pardon from US President Donald Trump, although his appeal is progressing through the Court of Appeal. In an interview published in February, Bankman-Fried signaled his willingness to identify with Republicans and right-wing politicians rather than Democrats. However, it is unclear whether Trump would consider a pardon, given the high level of public attention in the case. Shortly after taking office in January, Trump pardoned Silk Road founder Ross Ulbricht, who was serving a life sentence.
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