SBF Appeals Conviction, Claims Unfair Trial, Seeks Pardon
On November 5, 2025, Sam Bankman-Fried’s legal team filed an SBF appeal at the Second U.S. Circuit Court of Appeals in New York, challenging his 2023 fraud conviction and 25-year sentence. The lawyers argue Judge Lewis Kaplan exhibited judicial bias by pressuring jurors into a quick verdict, ridiculing SBF’s testimony and blocking key defense evidence—particularly proof that FTX held sufficient assets to cover customer losses. They contend that prosecutors, media and FTX’s new management presumed guilt before trial, denying a fair defense. The appeal, supported by the SBF appeal team, seeks to vacate the conviction or secure a new trial before a different judge. Meanwhile, SBF is pursuing a presidential pardon after former President Trump granted clemency to Binance co-founder Zhao “CZ” Changpeng. His team maintains that FTX experienced a liquidity crisis, not bankruptcy, and that he never intended to defraud users. This SBF appeal underscores ongoing legal risks in the crypto sector and may influence market sentiment around FTX-related assets.
Bearish
The SBF appeal underscores ongoing legal uncertainty for FTX-related assets, likely sustaining bearish sentiment in both short-term and long-term price action. In the short term, traders may react negatively to the prolonged court battle and potential delays in asset recovery, pressuring FTX tokens such as FTT. Over the long term, persistent regulatory scrutiny and doubts about judicial outcomes could deter institutional investors and suppress demand. While the pursuit of a presidential pardon introduces some optimism, the overall impact remains negative until legal clarity is achieved. Historical cases show that unresolved legal disputes often lead to stagnant or declining prices.