Sam Bankman-Fried has asked the U.S. Supreme Court to overturn his seven-count fraud conviction and approximately $11 billion forfeiture order, according to a petition filed on Sept. 10 and reviewed by CNN. The former FTX CEO is currently serving a 25-year federal prison sentence imposed in March 2024 after a jury convicted him in 2023 on charges including wire fraud, conspiracy, securities fraud, commodities fraud, and money laundering.
The appeal follows a June 2026 ruling by the Second Circuit Court of Appeals that unanimously upheld the conviction, sentence, and forfeiture. Bankman-Fried's legal team argues the trial court improperly allowed prosecutors to present evidence suggesting customers suffered large losses while restricting defense evidence about FTX assets that might eventually cover those losses. Supreme Court attorney Jeffrey Fisher described the loss evidence as distracting and prejudicial because the fraud theory applied did not require proof of an ultimate financial loss.
Central to the appeal is the Supreme Court’s 2025 decision in Kousisis v. United States, which held that a material lie used to induce a victim into a transaction involving money or property can support a federal fraud conviction without proof of net economic loss. The Second Circuit relied on that precedent, finding that the unauthorized transfer of customer funds to Alameda Research completed the alleged fraud even if customers might eventually have been repaid. Bankman-Fried's petition raises the narrower evidentiary question of whether loss evidence should be admissible when loss is not a required element.
The petition also challenges the $11.02 billion forfeiture as a violation of the Eighth Amendment’s Excessive Fines Clause. His lawyers argue the amount is grossly disproportionate to the offenses and could prevent him from earning a living after release. The Second Circuit previously rejected that argument, ruling that federal forfeiture law calculates proceeds obtained from criminal conduct rather than solely victims’ remaining losses.
Supreme Court review is not automatic. The justices must grant certiorari, requiring at least four votes, before considering the merits. The federal government will have an opportunity to respond, and the Court may grant review, deny the petition, or request further briefing. A denial would leave the Second Circuit's judgment and the 25-year sentence in place.
