Sam Bankman-Fried appeals fraud conviction tied to FTX collapse
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(NEW YORK) — Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, was convicted because of a “false narrative” told by federal prosecutors at a trial “tainted” by errors, his attorneys argued in a new court filing Friday to a federal appeals court.
“Fair trial principles were swept away in a ‘Sentence first-verdict afterwards’ tsunami, as everyone rushed to judgment following FTX’s collapse,” defense attorneys wrote in the appeal. “Sam Bankman-Fried was never presumed innocent. He was presumed guilty—before he was even charged.”
Bankman-Fried was found guilty of fraud, conspiracy and money laundering last November after federal prosecutors in New York accused him of orchestrating a scheme that collapsed the crypto-exchange he founded, FTX, and stole $8 billion in customer funds.
He is serving a 25-year prison sentence, which his attorneys called “draconian.”
In Friday’s appeal, defense attorney Alexandra Shapiro attacked the trial judge, Lewis Kaplan, and the U.S. Attorney’s Office for the Southern District of New York, accusing them of lacking objectivity or even-handedness.
“He was presumed guilty by the media. He was presumed guilty by the FTX debtor estate and its lawyers. He was presumed guilty by federal prosecutors eager for quick headlines. And he was presumed guilty by the judge who presided over his trial,” the appeal said.
The U.S. Attorney’s Office declined to comment, but will submit a written reply brief.
The defense asked for a reversal of Bankman-Fried’s conviction and a new trial before a different judge.
Former Alameda Research CEO Caroline Ellison, Bankman-Fried’s ex-girlfriend and a blockbuster witness for the prosecution, is set to be sentenced for her role in the fraud later this month.
Shein and Temu icons are seen displayed on a phone screen in this illustration photo taken in Krakow, Poland on August 27, 2024. (Jakub Porzycki/NurPhoto via Getty Images)
(NEW YORK) — Federal safety regulators are calling for an investigation into popular Chinese e-commerce websites Shein and Temu over concerns shoppers can easily purchase baby and toddler products that do not meet U.S. safety regulations.
In a joint letter Monday, Consumer Product Safety Commission Commissioners Peter A. Feldman and Douglas Dziak cited “recent media reports that deadly baby and toddler products are easy to find on these platforms.”
The letter did not single out specific products, but one report from business technology publication The Information, cited in the CPSC letter, found that padded crib bumpers, which were banned by Congress in 2022, are still available on the retailer websites.
Temu said in a statement to ABC News that it requires all sellers “to comply with applicable laws and regulations, including those related to product safety.”
“Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation,” a Temu spokesperson said.
A Shein spokesperson also told ABC News that the company prioritizes customer safety.
“At SHEIN, customer safety is our top priority and we are investing millions of dollars to strengthen our compliance programs,” Shein said in a statement. “In the last year SHEIN has spent over $10 million building a strong global compliance function and developing partnerships with internationally renowned testing agencies such as Intertek, SGS, BV, and TUV, to further enhance our safety practices. Earlier this year it was also announced that an additional $50 million dollars will be dedicated to fortifying our Global Compliance Center and initiatives to ensure strict adherence to our rigorous product safety standards and full compliance with applicable laws and regulations.”
The spokesperson added, “Our global team, including more than 1,000 U.S. employees, remains steadfast in its commitment to quality and safety for our customers, and we resolutely support the Commission’s mandate.”
Both Temu and Shein have exploded in popularity in the U.S., in part because their sites offer cheap prices on a variety of products from clothes to home goods.
The CPSC commissioners said e-commerce platforms can offer great deals to consumers, but it’s critical they comply with U.S. safety standards to avoid any risk of injury.
(NEW YORK) — After once deriding cryptocurrency as a “scam,” former President Donald Trump on Monday formally threw his support behind World Liberty Financial, a crypto venture whose business model remains largely unclear but has already drawn scrutiny as a potential ethics headache for his administration if he returns to the White House in January.
Joined Monday by his two adult sons and others involved in the fledgling business, including billionaire donor Steve Witkoff, Trump declared in a livestream on X that “crypto is one of those things we have to do,” and suggested that he would work to limit regulation of the industry if elected.
“Right now, you have a very hostile [Security and Exchange Commission] … they’ve been very hostile toward crypto,” Trump said. “My attitude is different.”
Details about the venture, including Trump’s role and potential compensation, remain unclear. The company’s website, which bears an image of a backlit Trump speaking at a podium, suggests the platform will have its own crypto token, called $WL, and aspires to “empower our users to operate their finances … with no direct oversight of any government agencies or officials.”
Industry experts said the website provides few details about the company — including what it will offer, who will have access to its profits, and how the Trump family stands to make money from it. James Butterfill, the head of research at CoinShares, a digital asset management firm, told ABC News that the website contains little more than “buzzwords.”
Government ethics watchdogs consulted by ABC News were quick to point out potential conflicts of interest posed by a candidate for president launching or becoming otherwise involved with a new business within weeks of Election Day — particularly in an industry as polarizing and unregulated as crypto, in which users directly exchange digital currencies without the oversight of banks or the government.
Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, or CREW, said a future Trump administration would have wide latitude to impact crypto policy — and Trump’s own personal stake in the industry could potentially rub up against the best interests of the country.
“We’re still in the Wild West with crypto. It’s clear there is going to be some kind of regulation, but to what extent and how friendly they are to the industry, we don’t yet know,” Libowitz said. “The president obviously appoints the people in charge of that.”
Steven Cheung, a spokesperson for the Trump campaign, rejected any suggestion that Trump’s role in World Liberty Financial could pose an ethical dilemma if he’s reelected, calling Trump “the most ethical president in American history.”
“When President Trump first ran for office, he stepped away from his very successful and lucrative businesses because the job of saving America was the most important job he’d ever have,” Cheung said in a statement to ABC News. “Before he entered the White House, he ensured everything was done within the ethics guidelines set forth.”
In addition to Trump’s adult sons Donald Trump Jr. and Eric Trump, who have for months been promoting World Liberty Financial on social media, a so-called “white paper” first reported by CoinBase indicated that Trump’s youngest son, Barron, 18, would also play a role in the firm.
Witkoff, who appeared Monday on the X livestream, said he introduced the Trumps to two other partners in the venture, Zak Folkman and Chase Herro, both of whom have a colorful business history.
Herro, who previously called himself a “dirtbag of the internet” at a crypto conference in 2018, has said he has made millions from an ecommerce business after spending three years in jail for selling drugs when he was in high school. Folkman, who first joined forces with Herro in the ecommerce business more than a decade ago, has reportedly previously taught classes on “how to date hotter girls.”
On ABC’s Good Morning America on Tuesday, Witkoff — a longtime friend to Trump and one of his campaign’s biggest financial supporters — downplayed any potential conflict posed by Trump’s foray into crypto.
“If the president is elected, which I expect him to be, then everything that he — all of his of his ownership, his businesses, will be put in some sort of a trust.” Witkoff said. “His children, I would assume, will be involved in running it. And I doubt that, therefore, that there is any conflict.”
But Danielle Brian, the executive director of the Project On Government Oversight, said that would be nothing more than “window dressing.”
“A trust managed by family members will not eliminate the conflict of interest created by a sitting president owning any business,” Brian said.
Trump’s announcement on Monday marked his transition from a vocal skeptic of digital currencies to one of the industry’s most enthusiastic proponents. As president, he complained on Twitter that crypto markets were “highly volatile and based on thin air.” In 2021, shortly after leaving the White House, Trump called cryptocurrencies a “scam.”
But during his 2024 bid for the White House, Trump has cozied up to crypto interests.
In May, his campaign said it would begin accepting contributions in cryptocurrency. Trump has regularly hosted industry enthusiasts at his properties and, in July, at the annual Bitcoin Conference, he pledged to make the U.S. the “crypto super-power” of the world.
Fisher-Price is recalling over 366,000 dumbbell toys that were sold as part of the brand’s Baby Biceps Gift Set. — United States Consumer Product Safety Commission
(NEW YORK) — Toy giant Fisher-Price is recalling hundreds of thousands of dumbbell toys due to a potential choking hazard.
The dumbbell toys were included in the Fisher-Price Baby Biceps Gift Set, according to the Consumer Product Safety Commission, which announced the recall on Thursday. About 366,200 recalled units were sold in the United States, with another 37,850 sold in Canada.
Fisher-Price states on its recall website that the gray caps on the dumbbell toys can separate, leading to a potential choking hazard for infants. The company recommends taking away recalled toys from kids immediately.
The CPSC states that the dumbbell toys were sold between April 2020 through August 2024 and were part of Fisher-Price’s Baby Biceps Gift Set, which includes three additional toys and is marketed as suitable for children ages 3 months and up.
According to Fisher-Price and the CPSC, the dumbbell component features a plastic gray bar and red and orange plastic “weights” with gray caps on each side of the bar. The recalled dumbbell toys bear the model number GJD49 on the back of the kettlebell toy in the gift set.
The toys were manufactured in China and Vietnam and sold in the U.S. at stores nationwide, according to the CPSC. The toys were sold at Buy Buy Baby, Fred Meyer, Hobby Lobby, Kohls, Marshalls, Target, TJMaxx and Walmart stores and online at Amazon.com, Target.com, Walmart.com, Zulily.com and other websites, retailing for about $18.
Fisher-Price says it has received seven reports of incidents where the gray caps separated from the toy, but has not received any reports of injuries as a result of the incidents.
Customers with the recalled dumbbell toys can reach out to Fisher-Price for a $10 refund on the company’s recall website, which also provides instructions on how to dispose of the recalled toys. Fisher-Price says a receipt or proof of purchase is not required to receive a refund for the dumbbell toy.
ABC News has reached out to Fisher-Price for comment.
