A federal appeals court has unanimously rejected Sam Bankman-Fried’s bid to overturn his 2023 fraud conviction and 25-year prison sentence, leaving the former FTX chief with sharply limited legal options as he continues to seek a presidential pardon.
The U.S. Court of Appeals for the Second Circuit issued its ruling on Friday, with a three-judge panel finding the government’s evidence against Bankman-Fried “robust” and his arguments for a new trial unpersuasive. Circuit Judge Barrington Parker wrote that the jury’s verdict was well supported, noting that while Bankman-Fried publicly assured customers their assets were safe, he was simultaneously diverting FTX funds for personal expenditures, political donations, investments and real estate purchases.
In 2023, a Manhattan jury convicted Bankman-Fried on seven counts of fraud and conspiracy after prosecutors described a scheme to misappropriate roughly $8 billion in customer funds. The case centered on the transfer of money from FTX to Alameda Research, the crypto trading firm he founded.
On appeal, Bankman-Fried’s lawyers argued that the trial judge improperly limited evidence that could have shown FTX remained solvent and capable of covering withdrawals. The appeals court flatly rejected that theory, citing a 2025 Supreme Court precedent establishing that fraud occurs when a material misstatement tricks victims into handing over money, even if the defendant intends to later repay them. The panel said FTX customers were defrauded once their funds were moved to Alameda Research, regardless of any subsequent belief in possible repayment. The court further noted that Bankman-Fried did not meaningfully contest the substantial evidence of falsified records used to conceal unauthorized spending.
At trial, Bankman-Fried acknowledged management failures but maintained he never stole customer money. He had earlier filed and then withdrew a request for a retrial based on what his attorneys called new evidence. District Judge Lewis Kaplan later rejected that motion, stating the cited witnesses were not newly discovered and could have been called during the original proceedings. Federal prosecutors also challenged claims of FTX’s solvency, pointing to records showing the exchange held only 105 bitcoin against customer claims approaching 100,000 bitcoin.
With his appeal now denied, the 34-year-old Bankman-Fried is serving his sentence at a low-security federal prison in California, currently eligible for release in 2044. He has formally applied for a presidential pardon, but President Donald Trump has previously said he has no plans to grant clemency. Senator Cynthia Lummis has publicly urged against a pardon, citing the harm caused to FTX customers. The pardon application remains under review, and Bankman-Fried’s remaining legal options include asking the full Second Circuit to rehear the case or petitioning the U.S. Supreme Court.
