A federal appeals court rejected Sam Bankman-Fried's challenges to his fraud conviction and 25-year sentence. The ruling closes the main avenue of appeal, leaving only a petition to the Supreme Court.
Alpha Score of 46 reflects weak overall profile with moderate momentum, poor value, weak quality, weak sentiment.
A federal appeals court upheld Sam Bankman-Fried's fraud conviction and 25-year prison sentence Friday, rejecting the FTX founder's arguments that the trial was unfair.
The three-judge panel on the Second Circuit Court of Appeals said the evidence against Bankman-Fried was "overwhelming" and the proceedings were fair. The 34-page opinion dismissed each of the four grounds raised in the appeal.
Bankman-Fried's lawyers had argued that Judge Lewis Kaplan showed bias during the 2023 trial. They pointed to a reported conversation between the judge and the lead prosecutor during a break. The judge acknowledged the exchange said it was unrelated to the case. The appeals panel said no evidence showed bias or improper influence.
The defense also claimed the court improperly excluded expert testimony on FTX's solvency, and that prosecutors misled the jury on the role of legal counsel. The panel rejected these arguments, finding the trial judge acted within his discretion.
The case traces back to November 2022, when FTX collapsed after a run on deposits exposed a multi-billion dollar gap between customer assets and the company's balance sheet. Prosecutors said Bankman-Fried directed the transfer of customer funds from FTX to his trading firm, Alameda Research. The money went to venture investments, political donations, and luxury real estate.
A jury convicted Bankman-Fried on seven counts of fraud and conspiracy in November 2023. Judge Kaplan imposed the maximum recommended sentence in March 2024 – 25 years – and ordered forfeiture of $11 billion. More than 100 victims submitted statements during sentencing.
The Second Circuit's decision leaves Bankman-Fried with only a long-shot petition to the Supreme Court. Legal experts said the opinion left little room for further review. A spokesman for the U.S. Attorney's Office for the Southern District of New York declined to comment.
FTX's new management, led by CEO John Ray III, has recovered billions through settlements and clawbacks. The bankruptcy court approved a reorganization plan that aims to repay most customers in full. Those payments will be based on the value of holdings as of the November 2022 bankruptcy filing date – far below current crypto prices.
Bankman-Fried, now 33, will serve his sentence at a federal prison designated by the Bureau of Prisons. His projected release date is 2049.
In March, the same judge imposed the maximum recommended sentence, ordering forfeiture of $11 billion and a 25-year term – a ruling we covered at the time.
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