FTX founder SBF accuses prosecutors of injustice, alleging contempt and questioning the billion-dollar confiscation order.

FTX's legal case has seen new developments, with founder SBF stating that he faced multiple unfair treatments during the previous trial. Recently, he filed an appeal to the court, accusing New York District Judge Lewis Kaplan, who presided over his case, of bias against him, resulting in an unfair trial process. He is requesting to overturn the original judgment and proceed with a retrial.

SBF Lawyer Questions Judicial Unfairness Amid Contempt and Ridicule Testimony

SBF's legal team pointed out that in the trial in November 2023, Judge Kaplan made several rulings unfavorable to SBF. Ultimately, the jury found SBF guilty of seven charges including fraud and money laundering, resulting in a 25-year prison sentence in March 2024.

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In the appeal documents, SBF's lawyer Alexandra Shapiro detailed the judge's bias, noting that Judge Kaplan made "acerbic comments" on the defense testimony and even "ridiculed" SBF in front of the jury. Lawyer Shapiro took on the responsibility of SBF's appeal, replacing the original legal team of Mark Cohen and Christian Everdell.

Accusations of Judge Excluding Favorable Evidence for SBF and Speculating Against Defense

SBF's lawyers stated that the judge excluded key evidence presented by the defense during the sentencing process, particularly regarding the financial status of FTX and Alameda. They were also prevented from informing the jury that FTX's clients did not ultimately suffer financial losses as those funds were expected to be reimbursed in the bankruptcy process.

"The court presented a false narrative, leading the jury to believe that FTX's clients, creditors, and investors' money had disappeared forever, which was not the complete picture," the lawyer stated.

Additionally, Lawyer Shapiro accused the judge of giving incorrect instructions to the jury, especially by speculating on SBF's statements. The judge told the jury, "Does it matter if SBF believes customers will ultimately lose money? Not really," which Shapiro said, "makes it easier for the prosecution to prove criminal intent!"

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Suspicions of Government Collaboration with Bankruptcy Team, Questions $10 Billion Seizure Order

The legal team also accused the government of closely collaborating with the FTX bankruptcy management legal team, obstructing SBF from obtaining favorable evidence. The documents noted that Judge Kaplan denied SBF's requests for investigation or hearings, ensuring that the FTX bankruptcy management team effectively became the prosecution's "assistant."

SBF's lawyers also criticized the court's $10 billion seizure order as "illegally unconstitutional" since the relevant laws do not support seizing such a large amount. They also pointed out that several of SBF's former colleagues, including Caroline Ellison, Nishad Singh, Gary Wang, and Ryan Salame, testified against SBF in court, admitting to their own fraud crimes. Salame was sentenced to 7.5 years in prison in May 2024.

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The defense lawyers emphasized that the FTX bankruptcy management team successfully recovered assets, proving that the exchange could indeed repay debts. They believe SBF was pressured into filing for bankruptcy prematurely by the bankruptcy handling team and the law firm Sullivan & Cromwell.

Based on the multiple unjust rulings, SBF's legal team requested the court to overturn the original judgment and transfer the case to another judge for a retrial to ensure a fair verdict for SBF.

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