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Sam Bankman-Fried Submits Appeal as FTX Reimbursement Plans Progress

2 mins
Updated by Harsh Notariya
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In Brief

  • Disgraced FTX founder Sam Bankman-Fried files an appeal against his 25-year prison sentence.
  • Bankman-Fried seeks a stay in a New York prison, defying an earlier order to serve in California.
  • Customer reimbursement efforts by FTX progress in parallel with Bankman-Fried's legal challenges.
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Sam Bankman-Fried, the embattled founder of bankrupt crypto exchange FTX, is fighting back. On April 11, 2024, he filed a notice of appeal challenging his 25-year prison sentence.

This legal move comes amidst ongoing efforts by FTX to start reimbursing its customers.

Sam Bankman-Fried Requested to Stay in New York Instead of California

Bankman-Fried’s legal team, Mukasey Young, LLP, submitted the notice. They requested that their client stay in New York while the appeal process is ongoing.

“Mr. Bankman-Fried respectfully requests … that the Court supplement its recommendation to the Bureau of Prisons (BOP) by issuing the attached proposed order recommending that the BOP allow him to remain at the Metropolitan Detention Center in Brooklyn to facilitate to his appellate counsel pending the filing of the briefs in his anticipated appeal,” Mukasey Young wrote.

Read more: Who Is Sam Bankman-Fried (SBF), the Infamous FTX Co-Founder?

Previously, Judge Lewis Kaplan ordered Bankman-Fried to be remanded to a low or medium-security prison near his parents in California.

The electronic file for the notice of appeal was officially transmitted to the US Court of Appeals (USCA). A three-judge panel from the 2nd Circuit US Court of Appeals in Manhattan will hear the case.

Experts believe criminal defendants have a slim chance of overturning their convictions in federal court, with less than 10% of appeals resulting in reversals. Should Sam Bankman-Fried’s appeal be unsuccessful at the 2nd Circuit, he would face the daunting task of petitioning the US Supreme Court to consider his case, representing an even more challenging prospect.

On March 28, 2024, Judge Kaplan sentenced Bankman-Fried to 25 years in prison. Kaplan cited Bankman-Fried’s false testimonies about his knowledge of FTX customer deposit misuse. Further, Kaplan pointed to Bankman-Fried’s witness tampering attempts, which exacerbated his legal troubles.

While Bankman-Fried’s legal battle continues, separate efforts to reimburse FTX’s affected customers progress. BeInCrypto reported that FTX plans to begin repayments by late 2024.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

Additionally, on April 5, 2024, FTX administrators liquidated a significant portion of the company’s Solana (SOL) holdings. This sale, encompassing 25-30 million SOL tokens from a larger $2.6 billion cache, raised nearly $1.9 billion. The tokens were sold at a 60% discount, fetching $64 each. The sale attracted notable firms, from Galaxy Trading to Pantera Capital.

The proceeds from this sale may aid in future customer reimbursements. However, the timeline for repayment remains uncertain as legal challenges persist.

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Lynn Wang
Lynn Wang is a seasoned journalist and content creator with over eight years of experience in digital marketing and cryptocurrency journalism. Her expertise lies in SEO strategy, blockchain technology, and Web3, where she has consistently delivered impactful content initiatives and engaged audiences effectively. Since January 2022, Lynn has been at the forefront of content and community efforts for BeInCrypto Indonesia. Under her leadership, the platform has witnessed remarkable growth,...
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