On March 11, the U.S. Attorney's Office for the Southern District of New York submitted a court response urging a federal judge to dismiss Sam Bankman-Fried's (SBF) motion for reconsideration. The prosecution systematically refuted his arguments, stating that given SBF's status as a major donor across political cycles, his claims of political persecution are 'outlandish.'
SBF's Arguments and Prosecutors' Rebuttal
The prosecution contends that even if the court acknowledges new testimony, it would not alter the trial's outcome. Evidence clearly indicates that SBF directed the transfer of billions of dollars in customer funds to Alameda Research, supported by testimony from his closest associates, internal communications, and financial records. A new trial based solely on the claims of two additional witnesses asserting the company's solvency would not be sufficient to overturn the existing evidence.
Allegations of Political Persecution
SBF's argument regarding a 'war on rights' is the most politically charged and has received the sharpest response. Bankman-Fried suggested that the charges against him are politically motivated. In response, the prosecution pointed out that SBF has been a significant political donor to bipartisan candidates across multiple political cycles, making his claims of political persecution factually difficult to substantiate.
Furthermore, the Trump administration indicated in early 2026 that there are no plans to grant Bankman-Fried a pardon, a decision that does not contradict the current administration's crypto-friendly regulatory stance. Providing broad support for the cryptocurrency industry does not conflict with the refusal to pardon a convicted fraudster.
Two Separate Legal Pathways
SBF's motion for reconsideration is procedurally distinct from the formal appeal his lawyers are pursuing through the Second Circuit Court. The Second Circuit appeal primarily focuses on alleged procedural errors by the trial judge rather than newly discovered evidence, representing a more substantive legal challenge to the verdict. Legal observers generally believe that, given the required standard of proof, the prospects for SBF's direct motion for reconsideration are limited.
Bankman-Fried is currently serving a 25-year sentence. The Department of Justice is seeking to reconsider the case of Tornado Cash co-founder Roman Storm, who faces charges that could result in a maximum sentence of 40 years. SBF's motion for reconsideration and the Roman Storm case represent the positions of the prosecution and defense in ongoing legal battles within the cryptocurrency space. However, resolutions in both cases are not expected to come quickly.