2nd U.S. Circuit Court Upholds Sam Bankman-Fried’s FTX Fraud Conviction, Rejects Appeal

Sam Bankman-Fried lost his appeal to overturn his fraud conviction and 25-year prison sentence after a three-judge panel of the 2nd U.S. Circuit Court of Appeals upheld all seven counts of fraud and conspiracy.

“One of Sam Bankman-Fried’s last credible paths to freedom closed Friday as a federal appeals court upheld his fraud conviction and 25-year prison sentence, ruling that the case against him was, in the court’s own words, “conservatively stated, robust”

Bitcoin Magazine

The ruling, handed down on June 12, rejected Bankman-Fried’s argument that his trial was fundamentally unfair, with the appellate court calling his claims “unpersuasive.”

Bitcoin Magazine

Prosecutors had presented evidence that Bankman-Fried directed the commingling of FTX customer deposits with Alameda Research, and the jury found him guilty on every count brought by the government.

Bankman-Fried was sentenced to 25 years in prison in March 2024, and the appellate decision effectively closed his most viable path to freedom while he pursued other legal avenues.

The court’s decision also left in place an order for Bankman-Fried to forfeit over $11 billion following his conviction.

In the appeals ruling, Circuit Judge Barrington Parker wrote that “While he was publicly reassuring customers, investors and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank.”

The court also rejected Bankman-Fried’s argument that he should be able to introduce evidence that FTX could cover customer withdrawals, stating that “FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda.”

Bitcoin World

Bankman-Fried’s legal team had argued that U.S. District Judge Lewis Kaplan imposed unfair evidentiary limitations and committed procedural errors during the original trial.

The Washington Examiner reported that the appeals panel unanimously disagreed with Bankman-Fried’s claims, describing the government’s evidence as “conservatively stated, robust.”

After the ruling, Bankman-Fried could still pursue further review, including asking the full Second Circuit bench to reconsider or petitioning the U.S. Supreme Court.

Alongside the appeal loss, Bankman-Fried pursued a presidential pardon, with records from the Justice Department’s Office of the Pardon Attorney showing he applied for a “pardon after completion of sentence.”

“Table of Contents Sam Bankman-Fried has lost his appeal to overturn his fraud conviction and 25-year prison sentence”

Blockonomi

The Washington Examiner said his appeal loss came days after he applied for a presidential pardon to wipe his criminal record, while the Independent reported that the application was listed as a separate clemency track.

Bankman-Fried told Fox Business he was “absolutely” seeking a presidential pardon from Donald Trump, but the Independent reported that neither the White House nor the Justice Department immediately responded to requests for comment.

The Independent also quoted Michael Avenatti criticizing Bankman-Fried’s pardon efforts, writing: “You don’t earn a pardon when you can’t admit, even to yourself, that you did wrong.”

Bankman-Fried remains incarcerated at a low-security federal prison near Santa Barbara, California, and is eligible for release in 2044, leaving the pardon request as a central remaining path outside the courts.