Trump's legal team claims that the penalties are unjust and that some allegations exceed the statute of limitations.

Justice David Friedman raised concerns about the lack of precedents for such lawsuits involving sophisticated parties where no financial losses were incurred.

A New York appeals court is set to hear arguments regarding Donald Trump's appeal of a substantial civil fraud judgment totaling $454 million.

Trump's legal team is contesting this judgment, which they argue could impose nearly $500 million in penalties.

During the hearing, the appellate court panel expressed skepticism about the validity of the $450 million judgment against Trump.

The initial ruling by Judge Arthur Engoron found that Trump and his co-defendants inflated asset values to secure favorable loan and insurance rates.

Trump's defense contends that the lawsuit is a politically motivated attack by New York Attorney General Letitia James, aimed at punishing his successful business dealings.

As part of the ruling, Engoron placed the Trump Organization under the supervision of an independent monitor for three years, although most sanctions are currently paused during the appeal.

This legal battle coincides with Trump's ongoing presidential campaign and other legal challenges, including a recent guilty verdict in a criminal case.

Attorney John Sauer, who has previously secured victories for Trump, presented the appeal to the judges, who are expected to respond within a month.

Trump posted a $175 million bond in April to halt the collection of the judgment while his appeal is in progress, avoiding immediate asset seizure.

The Attorney General's office claims that Trump's actions resulted in over $360 million in illegal profits, supporting the initial verdict against him.