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Key Takeaways
- The 2nd U.S. Circuit Court of Appeals denied Sam Bankman-Fried’s appeal, upholding his 2023 conviction on seven felony counts including wire fraud and conspiracy
- Defense lawyers argued that excluded evidence would have shown FTX was solvent, while prosecutors pointed to testimony alleging Bankman-Fried directed the theft of customer funds
- Bankman-Fried is serving his 25-year sentence at a low-security federal prison near Santa Barbara, with a projected release date of 2044
A federal appeals court on June 12, 2026 rejected Sam Bankman-Fried’s bid to overturn his fraud conviction stemming from the collapse of the FTX cryptocurrency exchange, leaving intact his 25-year prison sentence, according to a Reuters report.
Three-Judge Panel Denies Bankman-Fried’s Appeal in Manhattan Court
A three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan denied the appeal. The ruling upheld Bankman-Fried’s 2023 conviction on seven felony counts, including wire fraud and conspiracy charges.
Defense lawyers had argued that U.S. District Judge Lewis Kaplan improperly excluded evidence they said would have demonstrated that FTX was solvent and capable of meeting customer withdrawals.
Prosecutors pushed back on that argument, pointing to testimony from Bankman-Fried’s former lieutenants who alleged he directed the theft of customer funds to cover losses at Alameda Research, the trading firm affiliated with FTX.
Jury Convicted Bankman-Fried After Less Than Five Hours of Deliberation
A federal jury found Bankman-Fried guilty in November 2023 following a trial in which jurors deliberated for fewer than five hours. At his sentencing on March 28, 2024, Judge Kaplan characterized the fraud as a “very bad bet” on not getting caught.
Bankman-Fried, once a prominent cryptocurrency billionaire and major political donor, acknowledged operational mistakes during proceedings but maintained he never intended to steal customer funds.
The collapse of FTX in 2022 erased billions of dollars in customer funds. Bankruptcy proceedings have since returned funds to some customers, according to Reuters. The case drew intense regulatory attention to the digital assets sector in the years that followed.
Bankman-Fried Serving Sentence Near Santa Barbara, With Release Date Set for 2044
Bankman-Fried is currently serving his sentence at a low-security federal prison near Santa Barbara, California, with a projected release date of 2044. Further appeals to the full Second Circuit or to the U.S. Supreme Court remain possible.
