Crypto: Sam Bankman-Fried’s Appeal Hearing Scheduled for November 4

Nearly two years after his conviction, the former CEO of FTX sees his future replayed on appeal. The Second Circuit Court of Appeals set the hearing for November 4, a key step in this crypto trial.

A trial that continues to weigh on the crypto ecosystem

Sam Bankman-Fried, aka SBF, is currently serving a 25-year prison sentence for fraud and conspiracy. Convicted on seven counts, he remains the emblematic figure of a striking collapse in the crypto ecosystem.

FTX, once presented as a solid giant, collapsed in November 2022 under the weight of an insurmountable liquidity crisis. Clients’ crypto funds diverted to Alameda Research reveal fragile governance and absent risk management.

The appeal SBF is preparing is therefore far from trivial. His lawyers argue that the former CEO never truly benefited from a presumption of innocence and that the prosecution imposed a biased narrative, making it seem that the crypto funds were definitively lost. A nuance that could, if accepted, reopen the path to a new trial or a revised sentence.

Allies falling one after another

Around SBF, his former associates have already paid their judicial price. Caroline Ellison, former CEO of Alameda and ex-partner of Sam Bankman-Fried, received a two-year prison sentence after cooperating with justice. Gary Wang and Nishad Singh, also repentant, received only symbolic sentences, their cooperation weighing heavily in the balance.

Ryan Salame, on the other hand, took a different strategy: retracting his guilty plea. The result: over seven years in prison. A clear sign that the American justice system wants to emphasize exemplary punishment in this crypto case related to FTX.

This mosaic of convictions illustrates a striking contrast: SBF is the only one who held on to his plea of not guilty until the end. A risky stance that now costs him a long incarceration in a federal Californian facility, with a theoretical release scheduled for October 2044.

Between appeal and rumors of presidential pardon

The November 4 appeal is not the only glimmer of hope for Bankman-Fried. Rumors are already circulating about a possible request for a presidential pardon from Donald Trump. The fallen billionaire recently hinted at a more openly assumed closeness to the Republican camp, a political as well as judicial strategy.

But the prospect remains uncertain. Trump, upon his return to power, surprised by pardoning Ross Ulbricht, the founder of the dark market Silk Road. However, the SBF case is of a different magnitude: public opinion is particularly sensitive because it is not just abstract financial crime but millions of savers defrauded worldwide.

Whether the appeals court decides to reduce his sentence or the White House chooses to extend a hand, one thing is clear: Sam Bankman-Fried’s story is far from over. And his fate continues to reflect, for the crypto industry, a brutal lesson on the importance of transparency and governance.