A federal appeals court upheld the fraud conviction and prison sentence of Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, on June 12, 2026. The court's decision followed Bankman-Fried's appeal, which he argued was based on improper evidentiary rulings by the presiding judge. In November 2023, a New York federal jury found him guilty on seven counts, including wire fraud and money laundering, leading to a 25-year prison sentence in March 2024.
The U.S. Court of Appeals for the 2nd Circuit stated that the evidence against Bankman-Fried was substantial. Circuit Judge Barrington Parker noted that while Bankman-Fried assured customers and regulators that FTX funds were safe, he misappropriated those funds for personal use. Prosecutors alleged he stole over $8 billion from FTX customers to address financial deficits at his hedge fund, Alameda Research.
Bankman-Fried's legal team claimed that he was prevented from presenting evidence that would support his assertion that FTX had sufficient funds to cover customer withdrawals. The appeals court rejected this argument, emphasizing that customers were defrauded as soon as their funds were transferred to Alameda.
Following this ruling, Bankman-Fried has the option to appeal to the full appeals court or the Supreme Court. Additionally, he has applied for a presidential pardon from President Donald Trump, although Trump has previously indicated he does not intend to pardon Bankman-Fried. Currently, Bankman-Fried is serving his sentence at a low-security federal prison in California, with a scheduled release in 2044.