Appeals Court Formally Affirms Sam Bankman-Fried’s Conviction and Sentence

The US Court of Appeals for the Second Circuit has issued a formal mandate upholding former FTX CEO Sam Bankman-Fried’s conviction, narrowing his remaining paths toward early release from prison.

Court Rejects Key Defense Argument

The mandate followed a June 12 ruling affirming a lower court’s decision convicting Bankman-Fried on seven felony counts and sentencing him to 25 years in federal prison.

Three circuit judges rejected his claim that FTX had enough liquidity to make investors whole without losses, and upheld an $11 billion forfeiture order tied to the case. Circuit Judge Barrington Parker wrote that arguing Bankman-Fried intended to eventually repay customers was misleading, since wire fraud law covers even temporary misuse of funds. Parker said customers were defrauded the moment their money moved to Alameda, regardless of his intentions to return it later.

Limited Options Remain

With the mandate now official, Bankman Fried has few legal avenues left, including a presidential pardon or a Supreme Court appeal. President Trump said in January he had no plans to pardon him, and the Senate unanimously passed a resolution last month opposing clemency for the former FTX CEO.