Appeals court upholds SBF’s 25-year sentence

A federal appeals court on Friday rejected former FTX CEO Sam Bankman-Fried's bid for a new trial and affirmed the 25-year prison sentence he received after a New York jury convicted him in November 2023.

The U.S. Court of Appeals for the Second Circuit upheld the district court's ruling. A three-judge panel found no reversible error in the trial that produced convictions on seven counts of fraud and conspiracy tied to the collapse of the FTX exchange and its affiliate Alameda Research.

The panel wrote that the trial record supported the verdict that Bankman-Fried knowingly misused customer funds and executed large-scale fraud through FTX and Alameda. Prosecutors characterized the scheme as among the largest financial frauds of the past decade. The appeals court wrote: “The overwhelming evidence presented at trial proved that Bankman-Fried knowingly and intentionally committed large-scale fraud on FTX’s customers.”

The court said that while Bankman-Fried publicly reassured customers, investors and regulators that customer funds were safe, he diverted customer money to buy real estate, make political contributions and fund investments.

Bankman-Fried appealed in September 2024, arguing that U.S. District Judge Lewis Kaplan improperly barred evidence he said would show customer investments were sound and that liquidity existed to repay customers. The appeals court concluded the excluded material would not have changed the jury’s verdict.

In late April, a federal judge denied a separate motion for a new trial and described key claims in Bankman-Fried’s filings as “wildly conspiratorial.” After those denials, he sought a presidential pardon; the president has stated he has no plans to grant one.

Bankman-Fried founded FTX and Alameda Research. Prosecutors argued Alameda played a central role in the misuse of customer funds. Following his November 2023 conviction on seven counts related to defrauding customers, lenders and investors, he was sentenced to 25 years in prison.

The appeals court decision removes a significant procedural path to overturn the conviction. Bankman-Fried could seek further review from the U.S. Supreme Court, but the Second Circuit’s ruling leaves the district court’s findings and the sentence in place.