• Sam Bankman-Fried filed a pro se motion for a new trial on Tuesday, claiming new witness testimony undermines his 2023 fraud conviction.
  • The motion is separate from his formal appeal to the Second Circuit, which argues trial restrictions "hamstrung" his defense.
  • FTX's bankruptcy management continues clawback lawsuits targeting billions in alleged misappropriations, with settlements and trials expected into 2025.

Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, is making another bid to overturn his conviction. Serving a 25-year sentence for fraud, he filed a pro se motion for a new trial on Tuesday, docketed separately from his ongoing formal appeal to the Second Circuit. The motion hinges on claims that new witness testimony undermines the prosecution's case from his 2023 trial.

According to people familiar with the matter, the filing cites recent accounts that challenge the narrative of intentional fraud, though specifics remain under seal. This comes amid a backdrop where some witnesses have reportedly expressed views of SBF's innocence, as noted by journalist Michael Lewis, sparking debates over trial fairness. Efforts to reach SBF's legal representatives for comment were unsuccessful, but sources indicate the motion is unlikely to succeed standalone, with rulings potentially taking months.

Meanwhile, FTX's bankruptcy management is aggressively pursuing clawback lawsuits to recover billions lost in the 2022 collapse. Recent targets include insiders like SBF, with over $1 billion in alleged misappropriations, and venture deals such as a $700 million payout to K5 Global. A settlement with SBF and other executives was reached in December, but more suits are expected, with trials possibly stretching into 2025. Bankruptcy lawyers predict prolonged litigation, citing low recovery prospects from spent assets.

In the broader market, FTX's downfall accelerated the 2022 crypto winter, wiping out over $8 billion in customer funds and contributing to contagion like the failures of Three Arrows Capital and BlockFi. Heightened scrutiny has driven shifts toward regulated platforms such as Coinbase, with trends favoring proof-of-reserves and segregated customer funds. U.S. prosecutors had previously prioritized victim restitution over a second trial on charges like a $40 million China bribe, citing public interest in swift resolution.

As SBF's legal maneuvers unfold, stakeholders including millions of affected customers await recoveries, while creditors may recoup partial losses. The case echoes historical frauds like Enron and the 2014 Mt. Gox hack, underscoring recurring insolvencies in crypto. For now, the focus remains on the immediate filings and their slim chances, with experts noting that any sentence reduction would likely hinge on the separate appeal.

Correction: An earlier version misstated the timing of a prior settlement; it occurred in December of the prior year.