US prosecutors have urged a federal judge to deny Sam Bankman-Fried’s request for a new criminal trial, arguing that the former FTX chief has not met the legal standard required for a retrial. According to court filings cited in recent reports, the government said the evidence referenced by the defense does not qualify as newly discovered information that could justify reopening the case.
Bankman-Fried, who was convicted in November 2023 on multiple fraud and conspiracy charges related to the collapse of the cryptocurrency exchange FTX, filed the motion for a new trial earlier this year. The defense argued that testimony from former FTX executives could undermine the prosecution’s narrative about the company’s financial condition before its collapse.
However, prosecutors contend that the witnesses cited in the motion were already known to the defense during the original trial. As a result, the government said the testimony cannot be considered newly discovered evidence under federal legal standards, a key requirement for granting a retrial.
Witness Testimony at the Center of the Dispute
The defense has pointed to statements from former FTX executives Ryan Salame and Daniel Chapsky as potentially significant to the case. Bankman-Fried’s legal team claims their testimony could challenge aspects of the government’s presentation to jurors regarding the handling of customer funds and internal operations at the exchange.
Prosecutors disagreed, stating that both individuals were known to the defense prior to the 2023 proceedings and therefore, cannot be used as grounds for reopening the case. Federal courts typically grant retrials only when new evidence emerges that could not reasonably have been discovered during the original trial and that could potentially alter the outcome.
Judge Lewis Kaplan, who presided over the original proceedings, previously ordered prosecutors to respond to the retrial motion by March 11. The court has not yet issued a ruling on whether the request will move forward.
Ongoing Appeals and Broader Legal Context
The retrial request represents only one part of Bankman-Fried’s broader legal strategy following his conviction. The former executive has also filed an appeal with the US Court of Appeals for the Second Circuit seeking to overturn the verdict.
FTX’s collapse in late 2022 marked one of the largest failures in the history of the cryptocurrency industry. The exchange’s bankruptcy revealed an alleged multibillion-dollar misuse of customer funds involving its affiliated trading firm Alameda Research, triggering widespread regulatory scrutiny of digital asset platforms.
Bankman-Fried was later sentenced to 25 years in federal prison after the jury found him guilty on seven counts of fraud and conspiracy. The case became a landmark legal event for the crypto sector, shaping debates around corporate governance, exchange transparency, and investor protections.
Alongside the legal proceedings, public speculation has occasionally emerged about whether Bankman-Fried might seek a presidential pardon. Those discussions remain separate from the court process, and his legal options currently center on the appeal and retrial request.
The judge’s forthcoming decision on the retrial motion will determine whether the case proceeds to another courtroom battle or remains focused on the ongoing appellate process.