Sam Bankman-Fried, the former billionaire and founder of the now-defunct cryptocurrency exchange FTX, has lost his appeal to overturn his fraud conviction and subsequent 25-year prison sentence after a Manhattan federal appeals court reviewed the case. The three-judge panel officially rejected his claims of an unfair trial and bias from the presiding judge on Friday, affirming Bankman-Fried’s conviction, which stemmed from one of the largest recorded frauds in history.
The court’s detailed 42-page ruling described Bankman-Fried as the “main driver” of the fraudulent activities surrounding FTX, which dramatically imploded in 2022. Initially found guilty on seven counts—including two counts of wire fraud, and various counts of conspiracy to commit wire fraud, money laundering, and securities fraud—Bankman-Fried was sentenced in 2024.
In his appeal, Bankman-Fried’s legal team argued that federal judge Lewis A. Kaplan unduly limited their client’s testimony during the trial. However, the appellate court countered that the judge acted responsibly by preventing potential confusion or misdirection for the jury with additional testimony.
While the appellate ruling effectively upholds his conviction, Bankman-Fried still has the option to seek further appeal either through the appeals court’s full panel of judges or the Supreme Court.
In a surprising move earlier this week, Bankman-Fried submitted a request for a pardon from President Donald Trump. Online records indicate that this request, classified as a “pardon after completion of sentence,” is currently pending. In a recent interview from his prison cell, Bankman-Fried expressed his desire for a pardon, stating, “I absolutely” want one, though he recognized that the decision rests with the president.
Despite various pardon actions taken by Trump during his second term—including pardons for other white-collar criminals—Trump has made it clear that he does not intend to pardon Bankman-Fried.
Following the collapse of FTX and the implications of his criminal convictions, Bankman-Fried’s net worth has plummeted to $0, down from a peak estimated at $26.5 billion. Once hailed as the “multi-billionaire poster boy of crypto,” Bankman-Fried’s journey in the industry included high-profile marketing campaigns, such as a Super Bowl advertisement featuring comedian Larry David, and significant philanthropic contributions, notably to Democratic causes.
The downfall of FTX was precipitated by revelations regarding financial instability linked to Alameda Research, a closely affiliated crypto firm, sparking a cascade of investor withdrawals. Prosecutors have accused Bankman-Fried of misappropriating over $8 billion in customer funds to assert influence and power within the cryptocurrency sector.
