A federal appeals court has upheld Sam Bankman-Fried’s fraud conviction and 25-year prison sentence, denying his appeal. The Second Circuit court ruled that FTX customers were defrauded once their funds were moved to his trading firm, Alameda Research. Bankman-Fried’s legal team argued trial restrictions harmed his defense, but the panel dismissed the claim. The former FTX CEO, now 34, is serving his sentence with a scheduled release in 2044 while a separate clemency request remains pending.
A federal appeals court has denied Sam Bankman-Fried‘s attempt to overturn his 2023 fraud conviction and 25-year sentence. The U.S. Court of Appeals for the Second Circuit issued a unanimous ruling on Friday, upholding the verdict tied to the collapse of the FTX cryptocurrency exchange.
Judge Barrington Parker stated the prosecution provided strong evidence supporting the jury’s conclusion. The court agreed with the government’s description of how customer funds were misused for expenses, investments, and property purchases.
Prosecutors alleged Bankman-Fried diverted an estimated $8 billion from FTX customer deposits to his trading firm, Alameda Research. This case stands as one of the largest criminal proceedings in the cryptocurrency industry.
The appeals panel also rejected a defense claim that trial restrictions prevented Bankman-Fried from presenting helpful evidence. The court found that fraud occurred when funds moved to Alameda, regardless of any later belief they could be repaid.
Bankman-Fried had acknowledged management failures but denied stealing customer funds at trial. His testimony failed to convince either the jury or the appellate judges overseeing his case.
This denial follows Bankman-Fried’s earlier withdrawn request for a new trial. Court documents show he has also filed a separate application for a presidential pardon.
The former FTX CEO is serving his term at a minimum-security federal penitentiary in California. According to Federal Bureau of Prisons records, his scheduled release date remains 2044.
