GM. Sam Bankman-Fried is appealing his FTX fraud conviction, arguing the trial judge blocked key evidence supporting his good-faith defense as his parents lobby for a Trump pardon.

Meanwhile, FTX withdrew a motion limiting offshore payouts, prosecutors seek prison time for Samourai Wallet’s founders, and DeFi faces fresh contagion after Stream Finance’s $93m collapse.

Here’s the latest on courtrooms, crackdowns, and crypto chaos. 👇

Sam Bankman-Fried Appeals FTX Fraud Conviction in Court

Former FTX CEO Sam Bankman-Fried appeared before the US Court of Appeals on Tuesday seeking a retrial of his 2023 fraud conviction. His legal team argues that Judge Lewis Kaplan wrongly restricted evidence supporting claims he acted in “good faith” under counsel’s advice.

Bankman-Fried was convicted on seven criminal counts of defrauding FTX customers, lenders, and investors, earning a 25-year federal prison sentence. Prosecutors labeled the scheme “the largest financial fraud in a decade,” drawing comparisons to the infamous Ponzi operations of Bernie Madoff.

Former federal prosecutor Samson Enzer said the appeal faces “a steep uphill battle” unless judges find that evidentiary limits prejudiced the jury. Legal analysts added that appellate courts typically defer to trial judges unless cumulative procedural errors deprived the defendant of a fair trial.

The hearing’s outcome may take several months, though the tone of judicial questioning could signal the panel’s inclinations. Meanwhile, Bankman-Fried’s parents are reportedly pursuing a presidential pardon from Donald Trump, despite their son’s past multimillion-dollar donations to his opponent.

FTX Withdraws Motion Limiting Offshore Creditor Payouts

The FTX bankruptcy estate has withdrawn its motion to restrict distributions in several foreign jurisdictions flagged as high-risk. The request targeted nearly fifty countries, including China, Saudi Arabia, and Russia, citing unresolved crypto regulation in those markets. Creditors filed more than seventy objections, arguing that the proposed restrictions would unfairly limit rightful claims to repayment.

A filing on Monday confirmed the motion’s withdrawal without prejudice, allowing FTX to refile if future conditions warrant. Creditor advocates welcomed the decision but urged continued vigilance until payments are finalized in full. Several representatives warned that fiat-based repayments undervalue holdings, leaving many creditors short of their original crypto-denominated balances.

Prosecutors Seek Prison for Samourai Wallet Founders

US prosecutors are requesting five-year sentences for Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill. Court filings accuse the pair of operating an unlicensed money service that laundered at least $237 million in illicit proceeds. The memorandum described Samourai as a decade-long laundering operation facilitating transactions linked to darknet markets and organized cybercrime.

Rodriguez and Hill both pleaded guilty in July to conspiracy to operate an unlicensed money transmitting business. Sentencing hearings are scheduled for November 6 and 7, with prosecutors citing the statutory maximum of sixty months. The case reflects a broader crackdown on crypto privacy tools following Tornado Cash co-founder Roman Storm’s conviction earlier this year.

Analysts Trace $285M Exposure After Stream Finance Loss

DeFi researchers have mapped roughly $285 million in potential contagion across protocols following Stream Finance’s $93 million collapse. Analysis from the YieldsAndMore collective found interconnected exposure spanning seven networks through rehypothecated synthetic tokens and leveraged lending pools. Elixir, TelosC, and MEV Capital emerged as the largest creditors tied to Stream’s distressed synthetic asset markets.

The group warned that further vulnerabilities may surface as onchain positions unwind and collateral values are reassessed. Stream Finance has yet to publish a post-mortem or clarify user recovery plans after halting withdrawals. The incident marks DeFi’s third major failure this month, amplifying concerns over cross-protocol risk and collateral fragmentation.

Data of the day

A veteran crypto whale known as HyperUnit opened $55 million in long positions across Bitcoin and Ether this week. Blockchain analysts at Arkham identified $37 million placed on Bitcoin and $18 million on Ether via Hyperliquid. The trader previously gained fame for correctly predicting three consecutive market moves, including the October crash triggered by tariff tensions.

Bitcoin now trades near $106,600, while Ether holds around $3,600 as market sentiment shows lingering fear. Data from CryptoQuant indicates long-term holders have sold more than 400,000 BTC since early October. Analysts at Santiment said exchange balances continue declining, suggesting limited downside risk and possible accumulation before the next recovery cycle.

More breaking news

• Google Quantum AI unveiled new research into “quantum money,” proposing unforgeable tokens secured by physics rather than blockchains, potentially rendering traditional cryptography obsolete.

• Kraken expanded its MiFID-regulated derivatives platform across the EU, allowing traders to post crypto collateral under a unified, regulator-approved framework for perpetuals.

• Strategy launched a euro-denominated perpetual preferred stock called Stream, offering a 10% annual dividend to institutional investors and funding further Bitcoin acquisitions.

• MARA posted a record $123 million profit as it expanded beyond mining into AI-driven infrastructure and gas-powered energy generation projects in West Texas.

• Ripple acquired crypto wallet firm Palisade to strengthen its institutional custody and payments offerings, enabling fast wallet deployment for fintech and enterprise clients.

• Berachain distributed a hard fork binary to validators to patch vulnerabilities exposed by the Balancer V2 exploit that drained roughly $12 million in funds.

• Ripple’s RLUSD stablecoin entered the top ten USD-pegged assets with a $1 billion market cap less than a year after its initial launch.

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