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Judge Urged to Deny FTX Founder Bankman-Fried's New Trial Request

U.S. prosecutors are strongly opposing Sam Bankman-Fried’s plea for a retrial in his FTX fraud case, stating that his claims are merely repetitions of arguments previously dismissed by the jury.

The prosecution's memorandum asserts that new testimony from former FTX insiders does not qualify as newly discovered evidence since it was known prior to the original trial.

Bankman-Fried’s assertion that FTX was solvent when it collapsed is challenged by the prosecution, which claims this argument is both factually and legally flawed.

Prosecutors emphasize that the essence of criminal fraud occurs at the moment funds are misappropriated, regardless of later recovery through bankruptcy.

The original trial presented compelling evidence, including testimonies from former executives and extensive financial documentation, which supported the guilty verdicts delivered in less than five hours.

Furthermore, the government dismisses Bankman-Fried’s portrayal of himself as a victim of a politicized prosecution, suggesting this narrative is more of a public relations strategy than a legal defense.

Under Federal Rule of Criminal Procedure 33, new trials are rarely granted and only under exceptional circumstances, which prosecutors argue are not present here.

Judge Lewis A. Kaplan will make the final decision on whether Bankman-Fried's request for a new trial progresses any further.

For now, the prosecution calls for the court to uphold the original verdict that found Bankman-Fried guilty on multiple counts of fraud and conspiracy.

This case underscores the complexities and severe consequences in the realm of cryptocurrency and financial integrity.