One in every of Sam Bankman-Fried’s final credible paths to freedom closed Friday as a federal appeals courtroom upheld his fraud conviction and 25-year jail sentence, ruling that the case towards him was, within the courtroom’s personal phrases, “conservatively acknowledged, sturdy.”
A 3-judge panel of the Manhattan-based 2nd U.S. Circuit Courtroom of Appeals handed down the 42-page opinion on June 12, rejecting each argument Sam Bankman-Fried’s authorized crew superior to undo the November 2023 conviction that cemented one of many largest monetary collapses in crypto historical past, in line with Reuters.
On the coronary heart of the enchantment was a declare that the U.S. District Decide Lewis Kaplan had stripped Sam Bankman-Fried of a good protection by barring proof that FTX held sufficient property to cowl buyer withdrawals.
Protection lawyer Alexandra Shapiro advised the appellate panel in November 2025 that “Mr. Bankman-Fried’s trial was essentially unfair as a result of the jury solely received to listen to one facet of the story.”
Prosecutors countered that Kaplan’s ruling was appropriate: fraud fees hinge on misappropriation, not on the chance that property might have lined liabilities below totally different circumstances. The appellate panel agreed, discovering the trial courtroom’s proof rulings sound and the federal government’s case towards Sam Bankman-Fried overwhelming.
How FTX Fell
The alternate, as soon as valued at $32 billion, collapsed in November 2022 as soon as it was uncovered that the steadiness sheet of Alameda Analysis — Bankman-Fried’s affiliated hedge fund — was constructed on FTX’s personal alternate token somewhat than impartial property. 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, advised 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 courtroom ordered an $11 billion forfeiture and three years of supervised launch following Bankman-Fried’s March 2024 sentencing. Ellison acquired two years and was launched in January 2026 after serving 14 months.
The appeals courtroom ruling lands simply weeks after Bankman-Fried additionally filed a proper clemency petition with the DOJ’s Workplace of the Pardon Lawyer, requesting a presidential pardon from Donald Trump. The applying is listed as a “pardon after completion of sentence” — not a commutation — and Trump has mentioned publicly he is not going to grant it.
Decide 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 document.” 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 Courtroom 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 consumer funds.” He pointed to the FTX chapter property’s restoration of crypto property, 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 degree 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 govt.
