One among Sam Bankman-Fried’s final credible paths to freedom closed Friday as a federal appeals court docket upheld his fraud conviction and 25-year jail sentence, ruling that the case towards him was, within the court docket’s personal phrases, “conservatively said, sturdy.”
A 3-judge panel of the Manhattan-based 2nd U.S. Circuit Court docket of Appeals handed down the 42-page opinion on June 12, rejecting each argument Sam Bankman-Fried’s authorized staff superior to undo the November 2023 conviction that cemented one of many largest monetary collapses in crypto historical past, in response to Reuters.
On the coronary heart of the attraction was a declare that the U.S. District Choose Lewis Kaplan had stripped Sam Bankman-Fried of a good protection by barring proof that FTX held sufficient belongings to cowl buyer withdrawals.
Protection legal professional Alexandra Shapiro informed the appellate panel in November 2025 that “Mr. Bankman-Fried’s trial was basically unfair as a result of the jury solely received to listen to one facet of the story.”
Prosecutors countered that Kaplan’s ruling was right: fraud prices hinge on misappropriation, not on the likelihood that belongings might have lined liabilities below totally different circumstances. The appellate panel agreed, discovering the trial court docket’s proof rulings sound and the federal government’s case towards Sam Bankman-Fried overwhelming.
How FTX Fell
The trade, as soon as valued at $32 billion, collapsed in November 2022 as soon as it was uncovered that the stability sheet of Alameda Analysis — Bankman-Fried’s affiliated hedge fund — was constructed on FTX’s personal trade token somewhat than impartial belongings. The disclosure triggered a buyer run that ripped open an $8 billion gap in FTX’s accounts.
Three of Bankman-Fried’s former deputies — Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and engineering head Nishad Singh — every pleaded responsible and testified towards him. Ellison, the trial’s star witness, informed jurors Bankman-Fried gave her the instruction to divert buyer deposits to Alameda to repay loans from crypto lenders. “Sam directed me to commit these crimes,” she mentioned from the stand.
The court docket ordered an $11 billion forfeiture and three years of supervised launch following Bankman-Fried’s March 2024 sentencing. Ellison obtained two years and was launched in January 2026 after serving 14 months.
The appeals court docket ruling lands simply weeks after Bankman-Fried additionally filed a proper clemency petition with the DOJ’s Workplace of the Pardon Legal professional, requesting a presidential pardon from Donald Trump. The appliance is listed as a “pardon after completion of sentence” — not a commutation — and Trump has mentioned publicly he is not going to grant it.
Choose Kaplan denied a separate Rule 33 new trial movement in April 2026, calling Bankman-Fried’s declare that witnesses had been threatened by the federal government “wildly conspiratorial and completely contradicted by the file.” Bankman-Fried withdrew an earlier model of that movement on April 22 with out prejudice.
With the 2nd Circuit now closed, his authorized choices slim to a habeas petition — a route with a decrease success fee than direct appeals — or a Supreme Court docket petition.
What’s subsequent for Sam Bankman-Fried
Sam Bankman-Fried stays at a low-security federal jail close to Santa Barbara, California, and isn’t eligible for launch till 2044.
In a jail interview with Fox Enterprise this month, he maintained his place: “I didn’t steal person funds.” He pointed to the FTX chapter property’s restoration of crypto belongings, which have allowed the property to pay collectors greater than 100 cents on the greenback — a determine he frames as proof of FTX’s underlying solvency, although courts at each stage have rejected that framing.
The Friday ruling closes the chapter on what federal prosecutors known as a “fraud of epic proportions” — a case that shook institutional confidence in crypto markets, triggered congressional hearings, and compelled exchanges throughout the trade to overtake proof-of-reserves practices.
Again in January, President Donald Trump mentioned he wouldn’t pardon former FTX CEO Sam Bankman-Fried, rejecting clemency for the convicted crypto government.
