The former CEO of FTX failed to convince the judges that his trial was unjust, according to the appeals court ruling made on Friday.
By Nikhilesh De Jun 12, 2026, 2:13 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Sam Bankman-Fried, founder of FTX, leaving a Southern District of New York courthouse in 2023. (Nikhilesh De/CoinDesk)On Friday, Sam Bankman-Fried, the founder and former CEO of FTX, faced a setback as his appeal to overturn his conviction on fraud and conspiracy charges related to the downfall of his crypto trading firm was denied.
A panel from the Second Circuit Court of Appeals determined that Bankman-Fried's claims of an unfair trial were unconvincing, addressing his assertions that he was not allowed to present all of his legal arguments and that he was barred from contending that FTX’s investments were sound.
According to the ruling, "Bankman-Fried makes these arguments in the face of a trial at which the government’s evidence against him was, conservatively stated, robust," the court stated.
The appellate judges agreed that Judge Lewis Kaplan, who presided over the trial, had not erred in managing the objections or in making decisions regarding the evidence and arguments presented by both sides.
While noting the "broad discretion" district courts hold in trial management, the panel affirmed Judge Kaplan's decisions and elaborated on their views of his conduct during the trial, addressing Bankman-Fried's specific claims.
One of Bankman-Fried's points was that the funds he misused were intended for investments that would eventually yield returns.
"As the district court recognized, any assertion that Bankman-Fried lacked fraudulent intent because he planned to repay his customers was legally misleading and prejudicial, as the wire fraud statute includes temporary misappropriation of funds," the ruling explained.
The judges reiterated: "Whether the assets purchased by Bankman-Fried increased in value is irrelevant to whether he committed fraud," as stated in the ruling.
Bankman-Fried's defense contended that FTX operated as a margin futures trading platform, suggesting that customers should have anticipated potential temporary loss of access to their funds.
However, the ruling stated, "We are unpersuaded. The fact that some customers engaged in margin trading, which could lead to temporary access limitations, does not change the situation. Some customers chose margin trading while others did not. No one agreed to have their funds transferred under false pretenses to Alameda."
The panel's ruling upheld Judge Kaplan’s management throughout the trial.
This ruling aligns with the response Bankman-Fried's team received from the judges during the hearing last November, where the three-judge panel frequently interrupted and probed attorney Alexandra Shapiro, representing Bankman-Fried.
Earlier this week, Bankman-Fried formally requested a pardon from U.S. President Donald Trump, despite Trump previously stating he was not considering pardoning Bankman-Fried, unlike some other crypto figures who have received clemency in the past 18 months. Additionally, Bankman-Fried is pursuing a new trial in federal court, distinct from the appeal.