A federal appeals court on Friday upheld the 2023 fraud conviction of Sam Bankman-Fried, the former FTX co-founder, affirming the 25-year prison sentence and rejecting claims that his trial was procedurally unfair.
The 2nd U.S. Circuit Court of Appeals in Manhattan ruled that the government's case against Bankman-Fried was solid, describing the evidence as “conservatively stated, robust.” The three-judge panel found that the trial judge did not err in limiting the defense's evidence, as Bankman-Fried's legal team had argued.
Evidence of Massive Fraud
Bankman-Fried, now 34, was convicted of defrauding customers and investors of billions of dollars while running FTX, once the world's second-largest cryptocurrency exchange. The appeals court noted that Bankman-Fried publicly assured customers, investors, and regulators that their funds were safe, all while secretly diverting billions for his own use.
“While he was publicly reassuring customers, investors, and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments,” the court wrote in its opinion, authored by Judge Barrington D. Parker.
Trial and Sentencing
At his 2023 trial, Bankman-Fried testified in his own defense, but Judge Lewis A. Kaplan later criticized that testimony, saying Bankman-Fried committed perjury repeatedly and was “often evasive, hair-splitting, dodging questions.” Kaplan also noted that while some recovery for victims was possible, customers lost about $8 billion, investors $1.7 billion, and lenders $1.3 billion.
The case has drawn parallels to broader debates about regulatory oversight in the cryptocurrency industry. The appeals court's decision comes as other legal battles, such as challenges to state abortion bans, continue to shape the judicial landscape.
Bankman-Fried's Rise and Fall
Bankman-Fried's meteoric rise in the crypto world included Super Bowl ads, celebrity endorsements from Tom Brady and Stephen Curry, and testimony before Congress. But FTX collapsed in November 2022, leaving a hole of over $11 billion and triggering a massive federal investigation.
The appeals court heard oral arguments in November 2025, and the decision was widely expected given the strength of the government's case. Bankman-Fried's lawyer did not immediately respond to a request for comment; a prosecutor's spokesperson declined to comment.
The case has also influenced discussions on campaign finance, as Bankman-Fried was a major political donor. The ruling may have implications for how courts handle complex financial fraud cases, especially those involving emerging technologies. For instance, the Florida Supreme Court's recent decision on redistricting shows how judicial rulings can have far-reaching political effects.
