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The news of Sam Bankman-Fried’s appeal is the latest buzz in the FTX bankruptcy case. The former FTX CEO, central to the exchange’s collapse, aims to reverse the 25-year prison term from Judge Kaplan on March 28, 2024.
His lawyers had already submitted the Mukasey Young, LLP appeal to the US Court of Appeals (USCA) for the 2nd Circuit in Manhattan.
The team wants their client to stay in Brooklyn’s Metropolitan Detention Center during the appeal instead of moving to a prison near his parents in California, as Judge Kaplan ordered.
The Uphill Battle Ahead
Legal experts warn that Bankman-Fried’s attempt to overturn the conviction faces significant challenges. Federal court appeals rarely succeed, with fewer than 10% resulting in a verdict reversal.
If the appeal fails at the 2nd Circuit level, Bankman-Fried would face an even more challenging task appealing to the US Supreme Court.
Judge Kaplan’s Strict Penalty
Judge Kaplan based the 25-year sentence on Bankman-fraudulent Fried’s testimony regarding FTX customer deposit abuse and witness manipulation. This illustrates the gravity of his conduct and the court’s will to hold him responsible.
FTX’s Attempts To Pay Back Clients
Although Bankman-Fried’s case is still ongoing, different efforts to make the FTX clientele members recover their losses are advancing. Payment schedules will go live by the end of 2024 based on approximately 260,000 customer accounts, indicated FTX officials, releasing a bit of optimism among the potential victims of the bankruptcy.
Liquidation Of Solana Holdings
Additionally, on April 5, 2024, FTX administrators liquidated a significant portion of the company’s Solana (SOL) holdings. The sale, encompassing 25-30 million SOL tokens from a larger $2.6 Billion cache, raised nearly $1.9 Billion.
The tokens were sold at a 60% discount, fetching $64 each, attracting the attention of notable firms such as Galaxy Trading and Pantera Capital.
The proceeds from this sale may aid in future customer reimbursements, though the timeline for repayment remains uncertain as legal challenges persist.
Uncertainty Looms Over Reimbursement Timeline
The progress made in selling FTX’s Solana holdings is positive, but ongoing legal battles mean the timeline for customer reimbursements remains uncertain.
Bankman-Fried’s appeal, which could take months or years, may delay the distribution of funds. Any additional legal challenges could further prolong the process.
FTX administrators recognize customers’ frustration and emphasize the importance of navigating the legal complexities to ensure a fair reimbursement process.
Conclusion
The ongoing saga of Sam Bankman-Fried and FTX grips the crypto community. Bankman-Fried’s appeal against his 25-year sentence is a final attempt to avoid severe consequences. However, experts suggest he faces significant challenges ahead.
FTX administrators are actively working to reimburse affected customers. The recent sale of Solana holdings has generated substantial funds for this purpose. Yet, the road to full restitution remains uncertain.
As everyone navigates this complex situation, the crypto industry closely monitors developments. Many seek closure and accountability for the FTX collapse.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
