The U.S. Court of Appeals unanimously upheld the fraud conviction and 25-year prison sentence of FTX co-founder Sam Bankman-Fried, meaning that one of the most high-profile criminal cases in the crypto industry saw no substantial reversal on appeal.
The appellate court dismissed the core argument.
The judges of the U.S. Court of Appeals for the Second Circuit in Manhattan found that Bankman-Fried’s multiple grounds for appeal were insufficient to overturn the original verdict. The ruling stated that the evidence presented by the prosecution at trial was “substantial.”
Previously, Bankman-Fried attempted to argue that even if FTX funds had been diverted to cover Alameda Research’s losses or used for political donations, real estate purchases, and other expenses, FTX remained solvent and ultimately capable of repaying its customers, and therefore did not constitute fraud.
However, the appellate court did not accept this argument. The judge cited a 2025 Supreme Court case, noting that fraud is established when the defendant induces the victim to surrender funds through material misrepresentations, regardless of whether a net loss ultimately occurs.
The court emphasized the issue of false records.
The ruling also stated that Bankman-Fried concealed the actual use of FTX customer funds by fabricating business records, uses that were not authorized by investors. The judge specifically emphasized that Bankman-Fried failed to effectively challenge the relevant transactions and their accompanying false records.
In 2023, a Manhattan jury found the former CEO of FTX guilty on all seven counts of fraud and conspiracy. He was subsequently sentenced to 25 years in prison and is currently serving his sentence at a federal prison in California.
Legal pathways continue to narrow
With this appeal unsuccessful, Bankman-Fried’s remaining legal options have further diminished. Reports note that he formally applied for a presidential pardon earlier this week.
The article also notes that after Trump returned to the White House, he pardoned several cryptocurrency industry founders, but he had previously signaled that he does not intend to show leniency toward Bankman-Fried. Cryptocurrency industry professionals and their allies in Washington generally oppose this idea.
This means that, after the federal appeals court upheld the ruling, the pardon request has become one of the few remaining options available to Bankman-Fried.