Sam Bankman-Fried’s appeal fails as a federal court upholds his 25-year sentence for the $8B FTX fraud collapse.
Sam Bankman-Fried’s bid to walk back his fraud conviction hit a wall.
A three-judge panel at the 2nd U.S. Circuit Court of Appeals unanimously rejected his appeal. The court upheld his 25-year prison sentence tied to the collapse of FTX.
Prosecutors had accused him of stealing $8 billion in customer funds. The ruling keeps one of crypto’s most high-profile criminal cases firmly closed.
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The appellate panel did not mince words. Circuit Judge Barrington Parker, writing for the court, said the evidence against Bankman-Fried was, “conservatively stated, robust.”
He noted that while Bankman-Fried publicly told customers and regulators their funds were safe, he was moving that money to his crypto hedge fund, Alameda Research. Parker wrote that Bankman-Fried used FTX “as his own personal piggy bank,” spending customer funds on real estate, political contributions, and investments.
The defense had argued that Judge Lewis Kaplan, who oversaw the original 2023 trial, blocked key evidence. Specifically, they said he prevented Bankman-Fried from showing he believed FTX had enough funds to cover customer withdrawals.
The appeals court rejected that argument. The panel cited legal precedent stating fraud occurs the moment a defendant tricks someone into giving up money.
“FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda,” Parker wrote.
SAM BANKMAN-FRIED LOSES BID TO OVERTURN FRAUD CONVICTION, 25-YEAR PRISON SENTENCE
— *Walter Bloomberg (@DeItaone) June 12, 2026
SBF’s Conviction and What Comes Next
Bankman-Fried was found guilty in October 2023 on seven felony counts, including two counts of fraud and five counts of conspiracy. A federal jury in Manhattan returned the verdict after prosecutors called the scheme a “fraud of epic proportions.”
He was sentenced in March 2024. At that hearing, Judge Kaplan said Bankman-Fried knew his actions were wrong but “made a very bad bet about the likelihood of getting caught.”
Three of his former deputies pleaded guilty and testified against him during trial. His lawyers did not immediately comment after Friday’s ruling. According to Reuters, they could next petition the full 2nd Circuit or take the case to the U.S. Supreme Court.
Bankman-Fried is currently held at a low-security federal prison near Santa Barbara, California. He is eligible for release in 2044.
Trump Pardon Request Still Pending
Beyond the courts, Bankman-Fried is pursuing another path. Reuters reported he has filed a pardon request with President Donald Trump through the Justice Department’s Office of the Pardon Attorney.
Neither the White House nor the Justice Department responded to comment requests at press time.
Before FTX’s collapse in November 2022, Bankman-Fried was among crypto’s most prominent figures. He made headlines for large philanthropic donations and significant political spending.
His fall from a multibillion-dollar net worth to a federal prisoner remains one of the sharpest downturns in the industry’s history. Friday’s ruling makes his return anything but guaranteed.
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