Sam Bankman-Fried Loses Appeal as Court Upholds Fraud Conviction
A federal appeals court has unanimously upheld Sam Bankman-Fried’s fraud conviction and 25-year sentence, dismissing his claims that FTX was solvent enough to repay customers. The decision adds to the legal troubles facing the disgraced FTX founder, as reported by Decrypt.
On Friday, a panel of federal appeals judges upheld the fraud conviction of Sam Bankman-Fried, the founder of FTX, confirming a 25-year prison sentence. This unanimous ruling from the Second Circuit Court of Appeals in Manhattan dismantled Bankman-Fried’s arguments for overturning his conviction, stressing the strength of the government’s evidence against him.
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." The conviction, reached by a jury in 2023, included seven counts of fraud and conspiracy. Bankman-Fried is presently serving his sentence in a federal facility in California.
Much of Bankman-Fried’s appeal was based on the assertion that, despite the misappropriation of funds from FTX to cover debts incurred by his hedge fund, Alameda Research, the company could still have repaid its customers. However, the court rejected this argument, citing a 2025 Supreme Court case stating that fraud is committed through any materially false statement that induces another to part with money, regardless of the defendant's intention to cause financial loss.
The appeals judges highlighted that Bankman-Fried falsified business records to hide unauthorized spending of FTX customer funds and did not adequately refute the government's substantial evidence. They remarked, "Bankman-Fried does not meaningfully contest the substantial evidence the government marshalled at trial." With this appeal denied, Bankman-Fried’s only remaining option for release appears to be a presidential pardon, which he has requested from former President Trump.
Summary based on original reporting by Sander Lutz at Decrypt, originally published Jun 12, 2026. SolanaWire does not republish source content.
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