FTX Crypto Exchange Logo on Smartphone Screen Laying on Computer Keyboard. Source: 24K-Production - stock.adobe.com

Key Takeaways:

Sam Bankman-Fried has appealed his 25-year prison sentence following a conviction on seven felony counts related to the collapse of cryptocurrency exchange FTX.
His legal team filed the appeal on April 11 in the Southern District of New York, with intentions to challenge the conviction’s validity and possibly seek a new trial.
Public opinion is split over the severity of the sentence, reflecting varying views on the impact of Bankman-Fried’s actions on the crypto industry and its investors.

Sam Bankman-Fried has formally requested an appeal against his recent conviction and subsequent 25-year prison sentence.

The appeal was officially filed on April 11 by his legal team in the United States District Court for the Southern District of New York.

His attorney, Alexandra Shapiro, announced the intention to challenge the conviction on seven felony counts which were determined by both a jury and Judge Lewis Kaplan.

BREAKING: Former Crypto-king Sam Bankman-Fried files to appeal conviction and 25 year prison sentence. pic.twitter.com/OoqpMBFSC7
— MSNBC (@MSNBC) April 11, 2024

The request for an appeal was anticipated as Bankman-Fried’s legal representatives indicated plans to appeal at his sentencing on March 28.

Following the sentencing, Judge Kaplan also mandated the forfeiture of $11 billion.

Shortly after, on April 8, Bankman-Fried’s lawyers sought permission for him to stay at the Metropolitan Detention Center in Brooklyn rather than transferring to a federal prison in the San Francisco Bay Area during the appeal process.

Bankman-Fried’s legal troubles began when FTX, the cryptocurrency exchange he headed, faced severe liquidity problems and declared bankruptcy in November 2022.

He was arrested in the Bahamas, where FTX was based, and subsequently extradited to the U.S., where he faced charges of fraud and was convicted in November 2023.

Public opinion is divided on the adequacy of the 25-year sentence. Some argue it is too lenient considering the significant financial damage inflicted on numerous FTX customers, while others believe it serves as a strong deterrent within the cryptocurrency sector.

FTX co-founder Sam Bankman-Fried will appeal his conviction and 25-year prison sentence for committing a multibillion dollar fraud at his once-thriving cryptocurrency exchange. https://t.co/KL0KKyZsJ4
— Bloomberg Crypto (@crypto) April 11, 2024

The appeal will now proceed to the Second Circuit Court of Appeals, which will decide whether to uphold the initial conviction or reverse it, potentially leading to a new trial.

The appeal’s specific arguments for overturning the conviction have not been disclosed by Shapiro.

Meanwhile, legal proceedings for other key figures from FTX and Alameda Research, such as Ryan Salame, Caroline Ellison, Gary Wang, and Nishad Singh, continue.

Former #FTX Boss Sam Bankman-Fried Files Notice of Appeal, Challenges Conviction and Sentence https://t.co/bJXnHqRbKa
— Bitcoin.com News (@BTCTN) April 12, 2024

These individuals have all entered guilty pleas and reached agreements with the authorities prior to Bankman-Fried’s trial. Salame’s sentencing is scheduled for May 28.