Sam Bankman-Fried Loses Appeal Against Fraud Conviction

Sam Bankman-Fried, the founder and former CEO of FTX, recently lost his appeal to overturn his conviction on fraud and conspiracy charges related to the collapse of his cryptocurrency exchange. The Second Circuit Court of Appeals issued its ruling on June 12, 2026, determining that Bankman-Fried's arguments claiming an unfair trial were not compelling.

The appellate judges reviewed Bankman-Fried's assertions, including his claim that he was prevented from presenting certain legal arguments. However, the court found the evidence against him to be substantial. The judges stated, "Bankman-Fried makes these arguments in the face of a trial at which the government’s evidence against him was, conservatively stated, robust." They upheld the decisions made by Judge Lewis Kaplan during the trial, indicating that he did not err in managing objections or evidence presented by both sides.

One of Bankman-Fried's key arguments centered on the notion that he intended to repay his customers using funds he misappropriated. The court rejected this notion, stating that "any contention that Bankman-Fried lacked an intent to defraud because he intended to eventually repay his customers was legally misleading and prejudicial." Moreover, they explained that it is irrelevant whether the assets purchased with misappropriated funds appreciated in value regarding the fraud committed.

The judges also dismissed Bankman-Fried's argument that his customers, particularly those engaging in margin trading, should have anticipated restrictions on their access to funds. The ruling clarified that temporary deprivation of funds in margin trading does not justify the false pretenses under which the funds were transferred to Alameda Research, a trading firm co-founded by Bankman-Fried.

Bankman-Fried's legal team attempted to argue that the situation surrounding FTX did not constitute fraud since some customers may have expected market risks. However, the court rebutted this perspective by emphasizing the necessity for transparency and honesty in financial dealings, reinforced by the statement that "no one opted into having their money transferred under false pretenses to Alameda."

Earlier in June 2026, Bankman-Fried also made a formal request for a presidential pardon from U.S. President Donald Trump, although Trump previously indicated he is not inclined to grant such requests. Additionally, Bankman-Fried is pursuing a separate bid for a new trial in federal court, unrelated to his appeal.