The recent ruling from the US Court of Appeals for the Second Circuit confirmed the conviction of Sam Bankman-Fried, former CEO of FTX, on all seven charges, which included fraud and conspiracy. This decision was issued on June 12, closing off a significant route for Bankman-Fried to appeal his prison sentence, which is set at 25 years following his sentencing in March 2024.
Bankman-Fried contended that his trial lacked fairness, but the appellate court rejected his claims, deeming them not convincing. Just a month after sentencing, his legal team had quickly filed for an appeal, and they elaborated their arguments in a detailed brief submitted in September of that year. This documentation aimed to highlight procedural errors and limitations in evidence as imposed by Judge Lewis A. Kaplan during the trial.
In November 2025, oral arguments were heard, but even then, judges showed skepticism towards the defense's claims. The primary defense centered around the assertion that, while mistakes occurred, there was no malicious intention to deceive customers. Bankman-Fried's lawyers described the events surrounding the collapse of FTX and its affiliated hedge fund, Alameda Research, as a series of unfortunate mistakes rather than a calculated fraud to misappropriate customer assets.
However, the appellate judges did not agree and upheld the original trial's verdict, which found Bankman-Fried guilty of multiple charges including wire fraud, conspiracy to commit fraud, and money laundering. The trial occurred in November 2023 and led to a unanimous guilty verdict from the jury on all counts presented.
As for the aftermath of the conviction, Bankman-Fried was ordered to surrender over $11 billion, a reflection of the vast amount of customer funds mishandled through his control of Alameda Research. The evidence presented in the original trial demonstrated that he directed the mingling of FTX customer deposits with trading activities at Alameda.
Despite the severity of the 25-year sentence handed down, which is indeed significant, it fell short of the maximum possible sentence he could have faced. Current conditions indicate that without extraordinary measures, he will not see release until he is in his early fifties.
Following the appeals court ruling, Bankman-Fried applied for a presidential pardon, looking for avenues to mitigate the repercussions of his conviction. He also has other options available, which include requesting a full en banc rehearing by the entire Second Circuit or taking his case to the US Supreme Court.