Sam Bankman-Fried has suffered another major legal setback after a federal appeals court rejected his bid to overturn his fraud conviction linked to the collapse of cryptocurrency exchange FTX.
In a unanimous decision, a three-judge panel upheld both his conviction and 25-year prison sentence, concluding that prosecutors presented overwhelming evidence showing that customer funds were misused on a massive scale. The court stated that while publicly assuring users that their assets were safe, Bankman-Fried was simultaneously directing customer money toward investments, political donations, and luxury real estate purchases.
The former FTX founder was convicted on multiple fraud and conspiracy charges after prosecutors argued that billions of dollars in customer funds were diverted to support losses at Alameda Research, the trading firm closely tied to FTX. The collapse of the exchange in late 2022 became one of the biggest scandals in cryptocurrency history and triggered widespread fallout across the digital asset industry.
Bankman-Fried’s legal team had argued that the trial was unfair and that key evidence was excluded from the jury. However, the appeals court rejected those claims and ruled that the trial had been conducted properly.
Despite the ruling, Bankman-Fried still has legal options available. His attorneys can request a review by the full appeals court or seek intervention from the U.S. Supreme Court. Separately, he has also filed a request for a presidential pardon, though no decision has been made on that application.
The decision reinforces one of the most significant fraud convictions in the history of the cryptocurrency industry and marks another chapter in the dramatic downfall of a figure once regarded as one of crypto’s most influential entrepreneurs.
