Key facts
- The US Court of Appeals for the Second Circuit has officially upheld Sam Bankman-Fried's conviction and 25-year prison sentence.
- Judges rejected Bankman-Fried's arguments that FTX investors would not have experienced losses.
The U.S. Court of Appeals for the Second Circuit has formally upheld the conviction and 25-year sentence of former FTX CEO Sam Bankman-Fried. Judges rejected his claims that investors would not have suffered losses, affirming a New York court's $11 billion forfeiture order.
The appellate court's affirmation of Sam Bankman-Fried's conviction and sentence solidifies his lengthy prison term and the substantial forfeiture order, closing off key legal challenges and reinforcing regulatory and judicial stances against crypto fraud.
The U.S. Court of Appeals for the Second Circuit has issued a formal mandate upholding the conviction and 25-year prison sentence of former FTX CEO Sam Bankman-Fried. This decision significantly reduces his opportunities for an early release.
In their June 12 ruling, affirmed by the recent mandate, three circuit judges rejected Bankman-Fried's appeals. He had argued that FTX possessed sufficient liquidity to cover investor losses. The appellate court also upheld a New York court's $11 billion forfeiture order.
Circuit Judge Barrington D. Parker stated in the opinion that the wire fraud statute covers temporary misappropriation of funds. He clarified that FTX customers were defrauded the moment Bankman-Fried transferred their money to Alameda, regardless of his belief that he might later repay them.
With the appellate mandate now official, Bankman-Fried's remaining legal options for seeking a potential early release are limited. These include a presidential pardon from U.S. President Donald Trump or an appeal to the Supreme Court. Trump has previously stated he has no plans to issue a pardon, and the U.S. Senate recently adopted a resolution opposing clemency for the former FTX CEO.