US appeals court upholds Sam Bankman-Fried’s 25-year sentence for FTX fraud
The 2nd Circuit Court of Appeals ruled that evidence of misappropriated customer funds was robust, dismissing arguments regarding intent to repay as legally insufficient to negate fraud charges.
A unanimous three-judge panel of the US 2nd Circuit Court of Appeals has rejected former cryptocurrency billionaire Sam Bankman-Fried’s appeal against his fraud convictions and 25-year prison sentence. The Manhattan-based court upheld the verdict stemming from the collapse of the FTX exchange, finding that the evidence presented by prosecutors was "conservatively stated, robust."
Circuit Judge Barrington Parker, writing for the panel, highlighted the discrepancy between Bankman-Fried’s public assurances and his private financial conduct. The court noted that while he reassured customers and regulators that funds were safe, he was simultaneously using the exchange as a "personal piggy bank" to finance real estate acquisitions, political contributions, and investments.
Bankman-Fried’s legal team had argued that US District Judge Lewis Kaplan improperly excluded evidence supporting his belief that FTX possessed sufficient funds to cover customer withdrawals. The appeals court dismissed this contention, citing established legal precedent that fraud is committed the moment funds are transferred, regardless of the defendant’s subsequent intent to repay.
The ruling confirms the 2023 conviction in which Bankman-Fried was found guilty of stealing $8bn from customers to cover losses at his hedge fund, Alameda Research. Prosecutors described the scheme as a "fraud of epic proportions," noting that he admitted to operational mistakes but denied stealing funds. Three former deputies pleaded guilty and testified against him during the trial.
Following the decision, Bankman-Fried retains the option to seek a rehearing by the full 2nd Circuit or appeal to the US Supreme Court. He is also reportedly seeking a pardon from President Donald Trump, according to the Department of Justice’s Office of the Pardon Attorney. Neither the White House nor the Justice Department immediately responded to requests for comment regarding the pardon request.
Bankman-Fried is currently held at a low-security federal prison near Santa Barbara, California. If he exhausts all remaining legal avenues, he remains eligible for release in 2044.
