After being sentenced to 25 years in prison for fraud and conspiracy in March 2024, he formally appealed the sentence. According to Bloomberg, his defense team argues that the entire trial was stacked against him from the beginning.
They argue that he was found “presumed guilty” by the public, the media, and even the courts following FTX’s dramatic collapse in late 2022. The appeal alleges that prosecutors, FTX’s new management and Judge Lewis Kaplan all contributed to a “rush to judgment” that left little room for a fair defense.
The incident that defined the crypto era
The FTX lawsuit is more than just one man’s legal battle, it reflects how the crypto world is learning accountability. When FTX collapsed, more than $8 billion in user assets were lost. The incident spurred regulators and lawmakers around the world to push for tougher rules for how exchanges manage customers’ money.
The ramifications are now clear. Major exchanges such as Coinbase and Binance are strengthening internal controls and increasing transparency regarding their reserves. For example, Coinbase currently issues regular proof of reserves reports showing that it holds every customer’s funds on a 1:1 basis. This shift shows how the collapse of FTX has deeply reshaped trust in crypto finance.
FTX co-founder Sam Bankman Fried has appealed his 25-year prison sentence, claiming he was “presumed guilty” following the exchange’s collapse in 2022. Media pressure, prosecutors, FTX’s new management and Judge Lewis Kaplan all contributed to this, his lawyer told the appeals court.
— Wu Blockchain (@WuBlockchain) November 4, 2025
Interestingly, the crypto market itself has recovered since the FTX shock. According to CoinMarketCap, the market capitalization of cryptocurrencies will exceed $2.5 trillion in 2025, indicating that investor confidence is gradually returning. But the scars left by FTX remain, and the industry continues to grapple with questions about ethics and governance.
FTX incident details
Cryptocurrency liquidations have surged to new highs, demonstrating the market’s intense volatility. Approximately $1.2 billion in positions were wiped out due to the coronavirus crash.
Approximately $1.2 billion was liquidated during the coronavirus crash
Approximately $1.6 billion was liquidated when FTX crashed.
More than $1.7 billion was liquidated from the crypto market in the last 24 hours
operation continues pic.twitter.com/DNh6ne0zqt
— Jeremy (@Jeremybtc) November 5, 2025
After FTX went bankrupt, that number rose to $1.6 billion. More than $1.7 billion has now been liquidated across the crypto market in just the past 24 hours, marking one of the largest single-day shakeouts in recent history.
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The information provided by Altcoin Buzz does not constitute financial advice. It is for educational, entertainment, and informational purposes only. All opinions and strategies shared are those of the writer/reviewer, and their risk tolerance may differ from yours. We do not accept any responsibility for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets. Therefore, please conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
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