SBF Retrial Says Prosecutors Withheld Evidence Showing FTX Was Solvent
Sam Bankman‑Fried’s retrial filing alleges prosecutors suppressed an affidavit and financial data proving FTX was solvent during the November 2022 crisis. The defense claims prosecutors omitted billions in assets and relied on cooperating witnesses while excluding evidence that customer claims were later repaid at 119–143%. The filing raises Brady disclosure and judge‑recusal motions and accuses witness intimidation. If true, the withheld solvency evidence could be material to fraud convictions and prompt a new trial. The case may affect cryptocurrency regulation, exchange solvency assessments, and investor confidence as courts determine how to evaluate financial evidence for crypto platforms.
Neutral
The filing introduces significant legal uncertainty but does not directly change market fundamentals. Allegations that prosecutors withheld solvency evidence and that customers were ultimately repaid at 119–143% could reduce perceived systemic risk around centralized exchanges if proved, which would be bullish long term. However, the immediate effect is increased legal and regulatory uncertainty—possible retrial, prolonged litigation, and scrutiny of prosecutorial conduct—which can unsettle traders and prompt short‑term volatility. Historical parallels: new revelations in major financial trials (e.g., Enron-related court developments) have produced short-term market noise while longer-term impacts depended on verdicts and regulatory outcomes. Therefore, expect near‑term elevated volatility and cautious positioning; if the defense succeeds and undermines the prosecution narrative, confidence in exchange solvency disclosures could recover, creating a gradual bullish effect.