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Sam Bankman-Fried, the founder of FTX, has filed for an appeal in his fraud case. According to him, the trial judge was biased and that he was not given enough chances to defend himself. His legal team claimed that the trial rulings limited the key evidence that could have influenced the results.
The appeal is for retrial. Coupled with other legal processes through which FTX is engaged including Caroline Ellison’s motion for leniency and the unstaking of $1 billion in Solana.
Appeal Focuses on Alleged Judicial Bias and Trial Rulings
Bankman-Fried filed a 102-page appeal in which he claimed that Judge Lewis A. Kaplan who presided over the case had prejudice against him. The appeal accuses several rulings of limiting Bankman-Fried’s ability to use important evidence in his defense.
Another disputed issue concerned excluding the claim that FTX users would somehow regain their losses in the course of the bankruptcy proceedings. Bankman-Fried’s legal counsel also noted that the judge excluded certain evidence regarding the legal advice sought during the firm’s operations.
This limitation, they claim, denied the jury an understanding of the complete picture of Bankman-Fried’s actions. The appeal also takes issue with the “pre-testimony deposition.” That it was conducted before Bankman-Fried could testify, arguing that it greatly benefited the prosecution.
The appeal seeks a new trial before a different judge alleging bias and denial of fair process. Bankman-Fried’s defense counsel argues that these factors influenced the verdict that was reached against him and thus resulted in an unjust decision. If this appeal is successful it could result in a new trial though it is by no means guaranteed.
Caroline Ellison Seeks Leniency for Cooperation in FTX Collapse
Caroline Ellison, the former CEO of Alameda Research is asking for a lighter sentence as she played a part in the FTX debacle. As for Ellison, her lawyers submitted a recommendation for her to be released on time served and stressed the fact that she provided a lot of information to the authorities concerning FTX’s bankruptcy. She has also cooperated with prosecutors and regulators who brought charges against Bankman-Fried soon after the alleged fraud.
Ellison was the most important witness on the prosecution’s side in the course of the trial of Bankman-Fried. Her testimony was able to explain how the internal workings of FTX and Alameda were.
It connected Bankman-Fried to the fraud. As part of her cooperation, Ellison accepted a plea deal in December 202. She pleaded guilty to conspiracy and financial fraud charges.
Her attorney continues that her cooperation, along with the fact that she has no prior criminal record means that she deserves less time in jail. Even the court’s probation department has suggested a lighter punishment.
They’re acknowledging her contribution towards identifying assets linked to the FTX fiasco. The hearing for Ellison’s sentencing will be on September 24th, when the final decision will be made.
FTX/Alameda Unstakes Over $1 Billion Worth of Solana
More than $1bn of Solana (SOL) has been unstaked by FTX and Alameda Research from their wallets during legal process. Statistics indicate that roughly 530,000 SOLs worth about $71,000 have been unstaked in the last three months.
This unstaking activity also puts into question the company’s financial management. As it remains in the middle of legal and bankruptcy issues. This raises questions as to whether the unstaked assets will be used to pay legal fees. Or will they be invested in other ventures.
The ongoing withdrawals could be more significant and affect the Solana staking ecosystem and market perception. The current situation with FTX and Alameda, and overall ongoing financial and legal actions have the attention of crypto enthusiasts.