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The U.S. prosecution has submitted a response to the court, requesting the dismissal of former FTX CEO Sam Bankman-Fried’s motion for a new trial. The prosecution argues that the convicted individual has not provided valid grounds for reconsidering the case.
Prosecutors stated that the witnesses referenced by Bankman-Fried were known to the defense prior to the trial’s commencement, meaning their potential testimonies cannot be regarded as newly discovered evidence.
The prosecution emphasized that even with these testimonies, the outcome of the case would not have changed due to the substantial amount of evidence presented. According to the investigation, Bankman-Fried directed the transfer of billions of dollars in client funds to the affiliated company Alameda Research, which ultimately led to the collapse of the crypto platform.
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The prosecution dismissed Bankman-Fried’s argument that FTX was solvent and that clients could eventually recover their funds. According to the prosecution, the exchange lacked the necessary volume of cryptocurrency: shortly before its collapse, FTX held approximately 105 bitcoins while having liabilities to clients of nearly 100,000 BTC.
Prosecutors noted that the recovery of some assets during the bankruptcy process does not negate the fact that a crime was committed.
“The most aggressive claim in the motion — regarding FTX’s solvency — implies that the prosecution was based on falsehoods. However, this is factually incorrect, legally inappropriate, and deeply misleading. As the court previously noted, criminal fraud is considered complete at the moment of the unlawful appropriation of funds,” stated the representatives of the prosecution.
Previously, the former head of FTX sought a pardon from U.S. President Donald Trump. However, in January, Trump indicated that he did not intend to grant clemency to Bankman-Fried, despite having previously signed a pardon for Binance founder Changpeng Zhao.
In February, Bankman-Fried’s mother filed a motion on his behalf requesting a review of the case for which the founder of the bankrupt exchange is serving a 25-year prison sentence. The petition claims that two former FTX employees could refute the prosecution’s assertion that he deceived the exchange’s clients. According to Bankman-Fried, they declined to testify out of fear of prosecution by law enforcement.
