Overview
- A three-judge panel in Manhattan pressed the defense on claims that bankruptcy recoveries show no fraud occurred.
- Judges noted recent precedent that fraud does not require proof of economic loss, and prosecutors stressed customers were unable to withdraw funds.
- Defense lawyer Alexandra Shapiro argued Judge Lewis Kaplan wrongly restricted evidence on FTX’s solvency and lawyer involvement, asking for a retrial before a different judge.
- Prosecutors said about $8 billion in customer deposits was diverted to Alameda Research and highlighted testimony from three cooperating insiders.
- No decision was issued, with a ruling expected in the coming months, while talk of a potential presidential pardon remains only speculative.