Key facts
- Sam Bankman-Fried's lawyer has petitioned the US Supreme Court to review his criminal conviction.
- The petition argues the prosecution's fraud theory and $11 billion forfeiture order violated the Eighth Amendment.
- The Supreme Court is expected to decide whether to hear the case by early 2027.
- If accepted, a decision on Bankman-Fried's case could be issued by June 2027.
- Caroline Ellison, former Alameda Research CEO, is now employed at a charitable organization called Manifund.
Former FTX CEO Sam Bankman-Fried, convicted in 2023 on seven felony fraud counts, is seeking to have his case heard by the US Supreme Court. His lawyer, Jeffrey Fisher of Hecker Fink LLP, has filed a petition for a writ of certiorari, arguing that the prosecution's theory of fraud and the subsequent $11 billion forfeiture order violated Bankman-Fried's constitutional rights.
Bankman-Fried's legal team contends that the evidence presented at trial, which focused on the misuse of customer funds, was prejudicial and that the forfeiture amount constitutes an "excessive fine" under the Eighth Amendment. Fisher highlighted concerns about "prosecutorial overreach" and argued that the government's chosen legal theory made it irrelevant whether customers ultimately lost money or if Bankman-Fried intended to repay them.
The Supreme Court has given the US government until November 16 to respond to the petition. Justices could decide whether to hear the case in late 2026 or early 2027, with a potential decision by the end of the current term in June 2027 or the following term. Legal experts like Mark Bini, a former prosecutor, view the chances of the court accepting Bankman-Fried's arguments for a new trial as "low," though he noted the forfeiture amount is "really interesting."
Meanwhile, Caroline Ellison, the former CEO of Alameda Research and a key figure in the FTX collapse, has found employment at Manifund, a charitable fundraising organization. Manifund CEO Austin Chen stated he believes in redemption and offered Ellison a second chance after her prison sentence. However, the decision has drawn criticism from some in the crypto community, including Coin Metrics co-founder Nic Carter, who called it "extremely rogue."