Sam Bankman-Fried Appeal Denied: 25-Year FTX Fraud Sentence Upheld by Federal Court

TLDR

• A federal appeals court unanimously upheld SBF’s 25-year prison sentence
• Judges rejected his claim that FTX could have repaid customers
• SBF was convicted on seven counts of fraud and conspiracy in 2023
• He directed staff to use FTX customer funds to cover Alameda Research losses
• A presidential pardon is now his only remaining path out of prison

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Sam Bankman-Fried, the founder of collapsed crypto exchange FTX, has lost his appeal to overturn his 25-year prison sentence. The Second Circuit Court of Appeals in Manhattan ruled unanimously on Friday to uphold the conviction.

A three-judge panel reviewed and rejected every argument put forward by Bankman-Fried’s defense team. The court described the government’s evidence against him as “robust.”

Bankman-Fried was found guilty in 2023 on seven counts of fraud and conspiracy. He was sentenced in March 2024 and is currently held at a low-security federal prison near Santa Barbara, California. His release date is set for 2044.

What His Defense Argued

His legal team argued that Judge Lewis Kaplan wrongly blocked evidence during the trial. They said that evidence would have shown Bankman-Fried believed FTX had enough funds to cover customer withdrawals.

They also argued that even if funds were misused, FTX was still solvent and could have repaid customers. The appeals court rejected this argument outright.

Judges cited a 2025 Supreme Court ruling that said fraud occurs whenever someone uses a false statement to obtain money, even if no net financial loss was intended. Bankman-Fried falsified business records to hide how he spent customer funds.

What Prosecutors Proved

Three of Bankman-Fried’s former deputies testified against him. All three had pleaded guilty and cooperated with prosecutors.

They told the court that Bankman-Fried directed them to use FTX customer funds to cover trading losses at Alameda Research, his crypto hedge fund. The funds were also used for political donations and real estate purchases.

The Manhattan U.S. Attorney’s office said he stole $8 billion from FTX customers in total.

What Comes Next

With the appeal denied, a presidential pardon is now Bankman-Fried’s only remaining legal option. He formally applied for a pardon earlier this week through the Office of the Pardon Attorney.

He has been publicly flattering President Donald Trump on social media in recent months. Trump has pardoned other crypto figures since returning to office but has signaled he does not plan to extend clemency to Bankman-Fried.

The broader crypto industry has also pushed back against the idea of a pardon for the FTX founder.

Rapper Drake recently called for Bankman-Fried’s release on a new album, though the record received poor reviews.

Bankman-Fried’s appeal denial marks the end of his formal legal options inside the court system.

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