Summary

  • A federal appeals court has upheld Sam Bankman-Fried’s fraud conviction and 25-year prison sentence.
  • The judges dismissed his claims that FTX could have reimbursed customers, stating his misrepresentations alone qualified as fraud.
  • With the appeal rejected, a presidential pardon may be his only option for release.

Sam Bankman-Fried, co-founder and former CEO of FTX, has failed in his attempt to overturn his 25-year prison sentence and fraud conviction, as a panel of federal appeals judges unanimously affirmed the ruling on Friday.

The Second Circuit Court of Appeals judges from Manhattan thoroughly examined Bankman-Fried’s arguments for the appeal and found them unconvincing.

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."

In 2023, a jury in Manhattan found the FTX founder, once a prominent figure in the cryptocurrency space, guilty on seven counts of fraud and conspiracy. He was later sentenced to 25 years in federal prison in California, where he is currently serving his sentence.

Much of Bankman-Fried’s appeal centered on the assertion that, despite misusing FTX funds to cover losses at his affiliated hedge fund, Alameda Research, as well as for political donations and personal purchases, the company remained solvent and could have repaid its debts.

The court decisively rejected this argument, referencing a 2025 Supreme Court ruling which determined that fraud occurs whenever a defendant employs "a material misstatement" to deceive victims into providing money, even if it does not lead to net losses for the victim. Bankman-Fried altered business records to hide how he spent FTX customer funds without their consent.

The judges emphasized that Bankman-Fried never disputed the existence of these transactions and the falsified records associated with them.

“Bankman-Fried does not meaningfully contest the substantial evidence the government marshalled at trial,” they noted.

The disgraced crypto entrepreneur has been exploring options to escape his lengthy prison term for some time. Recently, he has attempted to gain favor with President Donald Trump by praising him on social media. Although Trump has pardoned various crypto founders since resuming office, he has indicated that he does not plan to grant clemency to Bankman-Fried. The cryptocurrency sector and its advocates in Washington have strongly opposed this idea.