Key Highlights
- SBF claims the DOJ threatened witnesses, including his pregnant fiancée, to block defense testimony.
- Judge Lewis Kaplan is being asked to recuse himself due to alleged bias in high-profile cases.
- FTX collapse framed as short-term liquidity crisis; all customer funds later fully repaid.
Sam Bankman-Fried, the former FTX CEO, alleges that the Department of Justice (DOJ) under former U.S. President Joe Biden pressured witnesses into silence or altering their testimony, calling for his 25-year conviction to be thrown out and for Judge Lewis Kaplan to recuse himself.
In a new filing shared on X, Bankman-Fried, also known as SBF, claims that multiple prospective defense witnesses were pressured by the Department of Justice. Some, he says, were threatened with harsh prison sentences, including up to 100 years, if they testified on his behalf.
“Weaponized DOJ” silenced defense witnesses
Ryan Salame, a former FTX executive, told the court, “One of my (many) regrets is actually letting my lawyers scare me into not testifying on SBF’s defense… No one got up [at Mr. Bankman-Fried’s trial] to counter any of the government’s narrative, because then you get threatened with more time in prison.”
Another former employee, Daniel Chapsky, confirmed, “Out of a concern for my well-being and those around me, I directed my counsel to tell Sam Bankman-Fried’s team that I was not willing to testify [for his defense].”
Bankman-Fried has called this a “one-sided coerced legal theater,” where the prosecution told jurors that billions in customer funds were gone, despite the money later being found intact.
SBF also filed a motion for Judge Lewis Kaplan to recuse himself, citing a pattern of “prejudging defendants,” including himself, Ryan Salame, and the current President Donald Trump. He argues that Judge Kaplan “cannot rule fairly” given the circumstances.
FTX collapse: Solvent, not stolen
The filing reiterates the narrative that FTX’s downfall was caused by a short-term liquidity crisis, not misappropriation:
- FTX had sufficient assets to repay all customer deposits.
- Withdrawals were briefly paused due to a run on the exchange after a rival dump of FTX tokens.
- By May 2024, the Debtors’ Estate confirmed that all customer funds were fully repaid—between 119% and 143% of their value as of November 2022.
Bankman-Fried contrasts this with the $1 billion paid to restructuring professionals and over $100 billion of value lost due to mismanagement, highlighting ongoing disputes over the estate.
Trial, sentencing, and SBF’s central claim
- November 2023: Bankman-Fried convicted on seven counts of fraud and conspiracy.
- Key testimony came from five former FTX employees, all under government pressure with cooperation agreements, immunity, or non-prosecution deals.
- March 2024: Bankman-Fried sentenced to 25 years at Terminal Island Federal Correctional Institution.
- An appeal is currently pending before the Second Circuit Court of Appeals.
Bankman-Fried asserts that the DOJ’s actions directly led to his conviction: “Since the trial, multiple people have spoken out about how a weaponized DOJ pressured them into withdrawing as witnesses for Bankman-Fried’s defense—in one case threatening his pregnant fiancée with baseless political charges if he did not comply.”
This is a developing story.
Also Read: Sam Bankman-Fried Seeks Retrial Over ‘Bogus’ FTX Bankruptcy Claims
