I recently noticed an interesting legal development: a well-known cryptocurrency exchange founder filed a new trial petition in the Federal Court of New York. The former CEO argued that the testimony of witnesses who did not appear at the original trial could change the court’s understanding of the financial situation of the exchange before its collapse. The petition was submitted in February and was represented by his mother. Legal observers have described this move as a low-probability attempt to win.

The background is that this founder has been convicted on seven counts of embezzling customer funds and sentenced to 25 years. Now his team is seeking a new breakthrough, claiming that the testimonies of former executives Daniel Chapsky and Ryan Salame should have been presented at the original trial, which could reshape the understanding of FTX and its affiliated entity Alameda Research’s financial condition. Particularly, Ryan Salame has already pleaded guilty and is serving a 7.5-year sentence, adding more complexity to the situation.

Even more interesting, the defense team has requested to replace the presiding judge, claiming that Judge Lewis Kaplan exhibited “clear bias” during the proceedings. They argue that the judge restricted certain defense arguments regarding the availability of investor funds, which influenced the jury’s judgment.

From a market perspective, this case involves the ongoing bankruptcy liquidation of FTX, which is valued at around $7 billion. By 2025, billions of dollars have already been distributed to creditors, with more payments expected. Although this legal move has a low chance of success, it keeps the event in the public eye. The crypto industry is still digesting the impact of FTX’s collapse, and every development in this case can influence investor confidence in industry governance and fund security.

It’s worth noting that even if the new trial petition is ultimately rejected, it sends a signal: in complex crypto financial cases, legal proceedings can last for years. For those monitoring FTX-related assets and creditor payout progress, this means the recovery process could take longer than expected.