Sam Bankman-Fried’s attempt to have his conviction and 25-year sentence for fraud overturned was denied on Friday. The decision came from a unanimous three-judge panel at the 2nd Circuit Court of Appeals in Manhattan, which stated that the evidence against him was “strong, to say the least.”
In a statement, Circuit Judge Barrington Parker noted that while Bankman-Fried reassured customers, investors, and regulators about the safety of their funds, he simultaneously misused FTX’s resources as if they were his personal finances, spending on real estate, political donations, and other investments.
Bankman-Fried’s legal team didn’t provide comments when asked.
There are options for his lawyers to potentially escalate the case, either by requesting all active judges in the 2nd Circuit to review it or appealing to the U.S. Supreme Court.
Moreover, according to the Department of Justice’s Office of Pardon Counsel, Bankman-Fried is also seeking a pardon from President Trump.
Neither the White House nor the Justice Department has commented on the developments.
“Fraud of epic proportions”
Once hailed as a significant player in the cryptocurrency world and a billionaire, Bankman-Fried’s fortunes collapsed with FTX’s downfall in 2022. He was found guilty of seven felonies by a federal jury in Manhattan in 2023.
Prosecutors from the Manhattan U.S. Attorney’s Office accused him of stealing $8 billion from FTX customers to cover losses at Alameda Research, a hedge fund focused on cryptocurrencies, labeling it a “fraud of epic proportions.”
During the trial, Bankman-Fried pleaded not guilty to two counts of fraud and five counts of conspiracy. He acknowledged mistakes in managing FTX but insisted he never stole any funds.
In challenging his conviction, Bankman-Fried’s attorneys contended that U.S. District Judge Lewis Kaplan improperly limited their ability to present evidence showing he believed FTX had enough money to satisfy customer withdrawals.
The Court of Appeals rejected this argument, asserting that fraud occurs the moment a defendant deceives someone into transferring money or property, regardless of whether there was an intent to eventually repay.
“FTX customers were deceived as soon as they sent money to Alameda, irrespective of any belief that Mr. Bankman-Fried might later return their funds,” Parker wrote.
Bankman-Fried is scheduled to be released in 2044.
Prior to the FTX crisis, Bankman-Fried was noted for his philanthropic efforts and political donations, making a name for himself in the crypto sector. At a sentencing hearing in March 2024, Judge Kaplan remarked that Bankman-Fried was aware his actions were unethical but underestimated the likelihood of being caught.
Three of Bankman-Fried’s former associates testified against him during the trial, admitting their roles in the scheme. Currently, he is incarcerated at a maximum-security federal prison near Santa Barbara, California, with a projected release date of 2044.
