TL;DR:
- The U.S. Second Circuit Court of Appeals rejected Sam Bankman-Fried’s request for a new trial in the FTX case.
- The court upheld the 25-year prison sentence and the seven counts of fraud and conspiracy handed down in November 2023.
- The judges dismissed arguments regarding the solvency of customer funds and the alleged exclusion of key evidence during the original trial.
The U.S. Second Circuit Court of Appeals rejected the appeal filed by Sam Bankman-Fried, former chief executive of FTX, who sought a new trial and the review of his 25-year prison sentence. The three-judge panel upheld the original decision of the district court, which in November 2023 found him guilty on seven counts of fraud and conspiracy against the platform’s customers, lenders, and investors.
Prosecutors had characterized the scheme as arguably the largest financial fraud of the past decade, drawing comparisons to the Ponzi scheme orchestrated by Bernie Madoff. Bankman-Fried founded both FTX and the hedge fund Alameda Research, which played a central role in the fraudulent operation.
The FTX Fraud Speaks for Itself
In September 2024, the defense filed the appeal and challenged the conduct of Judge Lewis Kaplan, arguing that Bankman-Fried had been prevented from presenting relevant evidence. The defense also contended that customer investments were sound and that sufficient liquidity existed to meet obligations to them. The appeals court rejected each of those arguments explicitly.
“The overwhelming evidence presented at trial demonstrated that Bankman-Fried knowingly and intentionally committed large-scale fraud against FTX customers,” the court stated in its ruling. The judges noted that while publicly reassuring customers, investors, and regulators about the safety of funds, he was simultaneously using them to finance real estate, political contributions, and personal investments.
Trump Rules Out a Pardon for Bankman-Fried
In late April, a federal judge had also rejected a separate motion for a new trial, describing the central arguments of that filing as “extremely conspiratorial.” Adding to that, Bankman-Fried sought a pardon from President Donald Trump, who publicly ruled out that possibility. With the appeal denied, the 25-year sentence stands, and no immediate legal avenues remain in sight.
