US Prosecutors Push Back Against Sam Bankman-Fried’s Bid for New Trial

Government Says Former FTX CEO Failed to Meet Legal Standard for Retrial

Federal prosecutors are urging a judge to reject a request for a new criminal trial from former FTX chief Sam Bankman-Fried, arguing that the defense has not met the strict legal requirements needed to reopen the case.

According to a report by Bloomberg, prosecutors told the court that the evidence cited by Bankman-Fried does not qualify as newly discovered information, a key requirement for granting a retrial.

The filing marks another chapter in the legal aftermath of the collapse of FTX, once one of the world’s largest cryptocurrency exchanges.

Prosecutors Challenge “New Evidence” Argument

Testimony From Former Executives Was Known Before the 2023 Trial

In court documents, prosecutors argued that testimony cited by the defense does not meet the legal threshold for a retrial.

Bankman-Fried’s legal team pointed to potential testimony from former FTX executives Ryan Salame and Daniel Chapsky, claiming their statements could undermine the government’s case.

However, prosecutors countered that both individuals were already known to the defense prior to the 2023 trial, meaning their testimony cannot be considered newly discovered evidence.

Under US law, courts typically grant retrials only when new evidence emerges that could not reasonably have been identified before the original trial.

Judge Has Yet to Rule on the Motion

Defense Filed Retrial Request in February

Bankman-Fried submitted the motion for a new trial in February, arguing that testimony from former executives could challenge prosecutors’ portrayal of FTX’s financial condition before its collapse.

His defense team claimed statements from Salame and Chapsky could weaken the narrative presented to jurors during the trial.

The presiding judge, Lewis Kaplan, ordered prosecutors to respond to the request by March 11.

For now, the court has not issued a ruling on whether the retrial motion will move forward.

Meanwhile, Bankman-Fried continues to pursue a separate appeal before the United States Court of Appeals for the Second Circuit.

Conviction Stems From FTX Collapse

Jury Found Bankman-Fried Guilty on Seven Counts

A jury convicted Bankman-Fried in November 2023 on seven counts of fraud and conspiracy tied to the misuse of customer funds at FTX and its affiliated trading firm Alameda Research.

The case became one of the most closely watched financial trials in the cryptocurrency industry.

Following the conviction, the former crypto executive was sentenced to 25 years in prison, closing one phase of the legal battle surrounding the exchange’s collapse.

Political Speculation Surrounds the Case

Talk of a Presidential Pardon Has Circulated

The legal maneuvering has also unfolded alongside speculation that Bankman-Fried may seek political relief.

On Feb. 1, the former executive publicly praised the cryptocurrency policies of Donald Trump, prompting discussion about whether he was attempting to build political support while pursuing legal appeals.

However, the idea of a presidential pardon appears unlikely.

According to reporting by The New York Times, Trump said on Jan. 9 that he had no intention of pardoning Bankman-Fried.

With that path seemingly closed, an appeal and the retrial motion remain the primary avenues for the former FTX leader to challenge his conviction.