"FTX founder seeks to overturn 25-year prison sentence and fraud conviction"

Lawyers for FTX cryptocurrency exchange founder Sam Bankman-Fried (SBF) have filed a notice of appeal seeking to have his fraud conviction and 25-year prison sentence vacated. The notice of appeal was filed by Alexandra Shapiro, head of SBF's defense team, at the Second Circuit Court of Appeals in Manhattan, New York, Bloomberg reported. Notably, the appeal will be heard by a three-judge panel who will decide whether to overturn the ruling made by U.S. District Judge Louis Kaplan two weeks ago.

Judgment and appeal process
For those who are not familiar with the circumstances, Judge Kaplan sentenced SBF to 25 years in prison on March 28, 2024. While that sentence is shorter than the 40 to 50-year range requested by prosecutors, it is far longer than the defense team's recommendation of no more than six and a half years. Additionally, Judge Kaplan ordered SBF to pay $11 billion in disgorgement to compensate FTX and its sister hedge fund Alameda Research for their massive fraud.

The appeals process could take months to years as the defense team seeks a reduced sentence for SBF. However, some legal advisers believe it will be difficult to convince the Second Circuit to overturn the district court's decision. Some speculate that the probability of a successful reversal is less than 1 in 10%. Once the appellate proceedings begin, SBF's attorneys are expected to strengthen their arguments and secure a favorable outcome for their client. However, if SBF's lawyers are unable to obtain a favorable ruling in the Second Circuit, they may appeal the case to the U.S. Supreme Court.

SBF’s legal dilemma
Remember, Bankman-Fried was found guilty of all seven criminal charges in November 2023. The allegations involve the misappropriation of approximately $10 billion worth of FTX customer funds, which ultimately led to the exchange’s collapse. Prosecutors said Bankman-Fried used clients' money to finance his lavish lifestyle, fund political contributions and repay loans obtained by Alameda Research. SBF, in contrast, argued that the exchange lost billions in customer funds due to the liquidity crisis.

In his ruling, Judge Louis Kaplan said SBF had the potential to “do bad things in the future,” adding that the FTX founder showed no remorse for his criminal behavior. It remains to be seen whether the Second Circuit will uphold Judge Kaplan’s ruling or overturn it.

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