The former CEO of embattled cryptocurrency exchange FTX hid from public a $40 million transfer that he allegedly used to “bribe Chinese authorities,” according to ZachXBT.
Lawyers for Sam Bankman Fried appeared Tuesday in a federal appeals court in New York to appeal the former FTX chief’s 2023 conviction on seven criminal charges, including fraud and conspiracy, related to the collapse of his cryptocurrency empire.
Attorney Alexandra Shapiro, who represents the 33-year-old former cryptocurrency executive, argued before a three-judge panel of the U.S. Court of Appeals for the Second Circuit that Bankman Fried’s trial was “fundamentally unfair.” Mr. Shapiro argued that Chief Judge Lewis Kaplan “put his thumb on the scales many times to help the government and hinder the defense.”
Late Thursday, the administrator of Bankman Freed’s official X account released a statement citing the disgraced cryptocurrency founder’s response to paraphrased comments from FTX’s current CEO John J. Ray III.
“I’m not saying FTX’s solvency or the debtors’ mismanagement is the reason I’m not guilty (although that’s part of the story!). But debtors are still withholding funds. Look at Mr. Ji’s fight against Chinese creditors, for example. This needs more attention,” Bankman Freed was quoted as saying.
(SBF says:)
I don’t completely agree with every point, but basically this is what happened.
I’m not saying that FTX’s ability to pay or the debtor’s mismanagement is why I’m innocent (though that’s part of the story!). However, the debtor still has the funds withheld. For example… https://t.co/MGcqjebNpz
— SBF (@SBF_FTX) November 6, 2025
Blockchain security detective ZachXBT responds to explanation from former FTX chief answered: “Tell me the mystery about the $40 million transfer to the Chinese authorities that you were hiding from the people.” He attached an X post from 2023 linking one of his FTX wallets to a $40 million transaction that was allegedly used to bribe Chinese officials.
ZachXBT questioned by SBF over $40 million bribery charge
2D Investigators’ post references the findings of crypto trader and on-chain analyst DefiSquared, which said it tracked suspicious transfers involving wallets linked to FTX.
“Tonight I was looking at the addresses of a multi-chain exploiter and following the trail of money. Where did that lead me? It led me to $40 million in bribes that SBF is accused of bribing the Chinese government,” he wrote in August 2023.
Defisquared’s X thread noted that tagged multichain exploiter address 0x622e5 sent over 1,000 WBTC to a new wallet 0x3c74b, which then converted the funds to USDT through Gate.io.
Well, here’s some *wild* on-chain research. I was investigating a multi-chain exploit address tonight and following the trail of money. Where did it lead me? SBF allegedly bribed the Chinese government with $40 million in bribes🤯
Check it out:
First of all… pic.twitter.com/SebSnxUWmE
— DeFi^2 (@DefiSquared) August 1, 2023
The wallet reportedly used deposit address 0x96345 for money laundering and received inflows from several addresses, including 0x24f42, which received a $40 million USDT transfer from FTX in November 2021.
“Strange deal, isn’t it? Well, remember that SBF is currently accused of bribing the Chinese government. that’s right The $40 million amount will be “around November 2021.” ”
During Bankman Fried’s 2023 trial, U.S. federal prosecutors alleged that the FTX founder and his associates arranged millions of dollars in payments to unfreeze accounts belonging to Chinese exchange Alameda Research. These accounts reportedly contained approximately $1 billion worth of cryptocurrencies that had been locked as a result of an ongoing investigation in China.
Bankman Fried and his team “considered and tried numerous methods to unfreeze the accounts,” including legal appeals and personal assistance, according to the indictment. When those efforts failed, he “agreed to and directed millions of dollars in bribes” to Chinese officials to regain access to the funds.
Prosecutors accused Bankman Fried of siphoning billions of dollars in customer funds from FTX to support Alameda Research. A Manhattan jury found him guilty after less than five hours of deliberation, but the defense was adamant that the decision was hasty. Mr. Bankman Freed was convicted on all seven charges despite testifying in his own defense.
SBF lawyers seek second chance at appeals court
Bankman Fried’s lawyers argue that the atmosphere of the trial and Kaplan’s actions deprived him of due process. They argue that prosecutors presented oversimplified evidence that unfairly made their client appear “deliberately deceptive.”
Mr. Shapiro, his lead attorney, said: said The court said the government’s case “relies far more on emotion than on evidence” and argued that Bankman Fried’s decision was “a product of confusion rather than corruption.”
Bankman Fried’s team is seeking a new trial before a different judge because Kaplan’s conduct during the proceedings prejudiced the jury, according to the appeal brief. The defense cited examples in which Kaplan “ridiculed Bankman Fried and referred to the former FTX executive’s claim that he no longer ran Alameda Research after stepping down as CEO as a ‘joke.’
