Bankman-Fried's Appeal Denied
US Appeals Court Upholds Sam Bankman-Fried's 25-Year Fraud Sentence, No Federal Appeals Remain.
Key Points
Prosecutors said Bankman-Fried diverted about $8 billion in customer funds and used it for purposes including “personal expenses, political donations, and risky investments,” describing the scheme as a “fraud of epic proportions.”
Bankman-Fried pleaded not guilty to “two fraud counts and five conspiracy counts,” and while he denied stealing customer money, he acknowledged at trial “management mistakes.”
Reuters reported the appellate ruling “formally dismissed” Bankman-Fried’s appeal and left him with no remaining direct federal legal avenues; he could still file a petition for certiorari to the U.S. Supreme Court, but such petitions are “rarely granted,” and the case was not described as involving a qualifying constitutional or circuit-conflict issue. Reuters also noted a prior April rejection of a request for retrial.
In sentencing remarks carried in the reporting, Judge Lewis Kaplan said Bankman-Fried “made a very bad bet about the likelihood of getting caught,” adding to the court’s conclusion that he knew his conduct was wrong but misjudged the odds of detection.
A federal appeals court on June 12, 2026, upheld Sam Bankman-Fried's fraud conviction and 25-year prison sentence, ending his main legal fight over the collapse of FTX. A three-judge panel of the Second Circuit in Manhattan rejected every defense argument in a unanimous 42-page opinion, calling the government's evidence "conservatively stated, robust," according to Reuters.
Bankman-Fried, now 32, is locked up at a low-security federal prison near Santa Barbara, California. His earliest possible release date is 2044. With no direct federal appeals left, he has filed a separate application for a presidential pardon through the Justice Department, Reuters reported.
How $8 Billion in Customer Funds Disappeared
Prosecutors said Bankman-Fried diverted roughly $8 billion in FTX customer deposits to his hedge fund, Alameda Research. The money went toward personal expenses, political donations, and risky investments. A federal jury convicted him on seven counts of fraud and conspiracy in November 2023 after less than five hours of deliberation, according to NY Post.
At sentencing, Judge Lewis Kaplan ordered an $11 billion forfeiture. He said Bankman-Fried "made a very bad bet about the likelihood of getting caught." Bankman-Fried acknowledged "management mistakes" at trial but denied intentionally stealing from customers, The Globe and Mail reported.
Defense Argued Judge Gagged Key Evidence at Trial
Bankman-Fried's lawyers said the trial was "fundamentally unfair." They argued that Judge Kaplan blocked evidence showing FTX was solvent on a balance-sheet basis. They also said he was prevented from testifying about advice he received from lawyers — a so-called "good faith" defense.
The Second Circuit dismissed those claims. The appeals judges noted that testimony from three cooperating former executives — Caroline Ellison, Gary Wang, and Nishad Singh — provided "overwhelming" proof of guilt. The court also relied on a 2025 Supreme Court ruling clarifying that wire fraud is complete the moment a victim is tricked into handing over money, even if the fraudster planned to repay it, according to Yahoo News.
Pardon Bid Faces Long Odds Under Trump White House
Bankman-Fried filed his pardon application on June 8, 2026 — just days before the appellate ruling. The application goes to the Justice Department's Office of the Pardon Attorney. In January 2026, President Trump said he had "no intention" of granting clemency to Bankman-Fried, according to WOKV.
The timing looks strategic. Bankman-Fried has reframed his case in recent interviews as a victim of what he calls "Biden's lawfare machine," trying to appeal to the current administration. Prediction market Polymarket put his odds of a pardon by July 31, 2026 at just 3% following the ruling. His past record as a major Democratic donor — giving over $40 million in the 2022 midterms — makes clemency from a Republican White House a heavy lift.
What Legal Options Remain After the Ruling
The Second Circuit's decision formally closes the door on Bankman-Fried's direct federal appeals, Reuters reported. His lawyers could still ask the full Second Circuit to rehear the case, or petition the U.S. Supreme Court for review. But the Supreme Court accepts fewer than 2% of petitions it receives, and legal experts see no clear constitutional conflict that would attract its attention.
A separate bid for a new trial was already rejected in April 2026. Judge Kaplan called the defense's claims of witness intimidation "wildly conspiratorial." Barring a pardon or an unlikely Supreme Court intervention, Bankman-Fried will remain at the Federal Correctional Institution near Santa Barbara until at least 2044, according to Yahoo News.
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