A three-judge panel of the U.S. Court of Appeals for the Second Circuit, based in Manhattan, issued a unanimous ruling on Friday, rejecting Sam Bankman-Fried's attempt to overturn his fraud conviction and 25-year prison sentence. The judges described the evidence presented by prosecutors against Bankman-Fried as “solid.”
Judge Barrington Parker, writing for the panel, emphasized: “While Bankman-Fried publicly reassured customers, investors, and regulators that FTX customer funds were safe, he simultaneously used FTX as his personal piggy bank, spending customer money on real estate, political contributions, and investments.”
Bankman-Fried's lawyers did not immediately comment. They may ask the full active bench of the Second Circuit to rehear the case or appeal to the U.S. Supreme Court. Additionally, according to the Justice Department’s Office of the Pardon Attorney, Bankman-Fried is also seeking a pardon from U.S. President Donald Trump.
Trump previously pardoned Changpeng Zhao, the founder of the massive crypto exchange Binance, who was convicted of violating U.S. anti-money laundering laws.
Bankman-Fried was once one of the most influential figures in the cryptocurrency realm and a multi-industry billionaire before FTX collapsed in 2022. In 2023, a federal jury in Manhattan found him guilty on seven serious charges, including two counts of fraud and five counts of conspiracy.
Prosecutors accused Bankman-Fried of stealing $8 billion from FTX customers to cover losses at his crypto hedge fund, Alameda Research, calling it a “massive fraud.” At trial, Bankman-Fried admitted to making mistakes running FTX but insisted he never stole money.
In his appeal, defense lawyers argued that Judge Lewis Kaplan prevented Bankman-Fried from presenting evidence to demonstrate his belief that FTX had enough funds to pay customers. However, the appeals court rejected this argument, citing legal precedent that fraud occurs as soon as a defendant deceives someone into handing over money or assets, regardless of whether the defendant intends to repay later.
Before FTX's collapse, Bankman-Fried was a rising star in the volatile crypto industry, known for his generous philanthropic and political donations. Three former subordinates of Bankman-Fried pleaded guilty in connection with the case and testified against him at trial.
Bankman-Fried is currently held at a low-security federal prison near Santa Barbara, California. If no further appeals succeed, he will become eligible for release in 2044.
