US President Donald Trump reportedly closed the door on a pardon for Sam Bankman-Fried in January. That left the convicted FTX founder, known as SBF, with two options for a 25-year prison sentence — an appeal already underway in federal court, and a request for a new trial filed last month. Federal prosecutors immediately moved to close the second.
Witnesses Were Not Confidential, Government Says
On Thursday, Bloomberg reported that the US Justice Department urged a federal judge to deny Bankman-Fried’s request for a new trial, saying the defense is no closer to clearing the legal bar needed for a trial.
At the center of the battle is testimony from two FTX executives – Ryan Salame and Daniel Chapsky – who the defense says could weaken the federal case against Bankman-Fried at trial.
Prosecutors aren’t buying it. Both men were known to the defense before the 2023 trial, according to court documents cited by Bloomberg.
🚨 Bloomberg: US Prosecutors Argue SBF’s Prosecution Bid Should Be Denied
According to Bloomberg, American prosecutors argued that the request of Sam Bankman-Fried’s (SBF), the founder of FTX, should be rejected, as he failed to demonstrate the unfairness of his conviction. In…
— 0xzx (@0xzxcom) March 12, 2026
That is important because a defendant seeking a new trial on the basis of new evidence must show the evidence was actually unknown and unavailable at the time of the original trial. If the defense had access to those witnesses previously, the argument falls apart under the law.
The SBF filed for a retrial in February, arguing that what Salame and Chapsky could say now would jeopardize the government’s account of FTX’s financial condition before the collapse of negotiations in late 2022.
Judge Lewis Kaplan ordered prosecutors to respond to the request by March 11. They did – and their answer is no.
A case built on fraud and betrayal
A judge found SBF guilty in November 2023 on seven counts of fraud and conspiracy. The charges stem from the misappropriation of client funds by FTX and its related trading firm, Alameda Research.
The FTX filing wiped out billions of dollars from customers around the world and sent shockwaves through the crypto industry.
While Bankman-Fried pursued legal relief in court, her public comments drew scrutiny of another kind.
Reports indicate that he praised Trump’s position on crypto on social media on February 1, prompting speculation that he was seeking political intervention. Trump has said he has no plans to pardon him, according to reports.
Court Keeps SBF’s Options Limited
Several friends of Bankman-Fried took plea deals and testified against her. Their accounts painted a picture of a company where customer money was quietly funneled to Alameda and used for investments, loans, and political donations — all without the bankers’ knowledge.
A judge sentenced Bankman-Fried to 25 years in prison following the conviction.
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