Sam Bankman-Fried launched appeal to 25-year prison sentence

One of crypto’s biggest courtroom dramas is set to resume, as Sam Bankman-Fried prepares to challenge his 25-year sentence with a potential new trial on the horizon.

Summary

• SBF is gearing up to appeal his sentence.
• Rumours allege that SBF’s arguement will be based on his trial being unfair as customer funds were not fully lost.
• Roughly $1.9 billion in payouts is expected this September with $8 billion already returned to customers.

Sam Bankman-Fried, ex-CEO of the bankrupt FTX exchange, will be making another return to court this November, raising speculation around what his legal arguments could be.

SBF appeal date set as arguments take shape

A recent scheduling notice from the U.S. Court of Appeals for the Second Circuit confirmed that oral arguments in Sam Bankman-Fried’s appeal will be heard on Nov. 4, 2025. This is the most significant legal development since his March 2024 sentencing, where the former FTX CEO was handed 25 years in prison for seven felony counts tied to the $8 billion collapse of the crypto exchange.

The upcoming hearing will be closely watched by both the legal and crypto communities who are still skeptical about what his argument might be. His legal team initially argued that the original trial was fundamentally flawed, claiming SBF was “never presumed innocent” and that prosecutors pushed a false narrative of permanently lost customer funds.

Meanwhile, a recently pinned post on X by the disgraced mogul hints at another possible line of argument. The post details his claim that FTX’s Chapter 11 process was manipulated by external legal counsel and that valuable recovery efforts were sidelined. 

SBF alleged that Sullivan & Cromwell and John Ray III took control of FTX against his will, prioritizing legal fees over customer outcomes. If used in court, this argument may try to shift the focus from criminal intent to procedural injustice, a move that aligns with his long-standing stance that he was unfairly tried.

Although the specifics of the appeal are not known, the hearing on Nov 4 may allow a new trial or sentence hearing. Nevertheless, it will be hard to reverse such a high-profile conviction, especially with the harmful testimony of former FTX executives, such as Caroline Ellison and Gary Wang.

Rumours of pardon and pending payouts keep FTX saga alive

Beyond the appeal, SBF is also suspected of exploring other possible paths to freedom. In March, the former CEO sat down for an interview with Tucker Carlson where he hinted at a political shift toward Republican ideas, fueling speculation that he may be seeking a pardon from Donald Trump.

While SBF did not explicitly request clemency, the timing raised eyebrows, especially since Trump previously granted a pardon to Silk Road founder Ross Ulbricht, another controversial figure in the crypto space. The possibility of a pardon remains speculative but keeps Bankman-Fried in public view as legal and political narratives intersect.

On the other hand, some FTX customers are still awaiting compensation. So far, over $6.5 billion has already been returned to creditors, with an additional $1.9 billion in payouts expected this September. Nevertheless, about $1.4 billion in claims are still pending because of KYC, jurisdiction, and sanctions.

As the appeal hearing nears, the future of SBF comes into the limelight again. Whether the court grants a new trial or upholds the conviction, the outcome will resonate far beyond the courtroom, shaping future developments in the crypto space.