Sam Bankman-Fried lost his appeal to overturn his fraud conviction and 25-year prison sentence on Friday, June 12, 2026. A unanimous three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan ruled against the FTX founder, finding that prosecutors presented robust evidence of his crimes related to the cryptocurrency exchange collapse.
The ruling represents a significant legal defeat for Bankman-Fried, who was convicted by a federal jury in Manhattan in 2023 on seven felony charges. Prosecutors accused him of stealing $8 billion from FTX customers to cover losses at his hedge fund, Alameda Research. The cryptocurrency exchange collapsed in 2022.
Main Developments in the Appeals Court Ruling
Circuit Judge Barrington Parker wrote the opinion on behalf of the three-judge panel, delivering a scathing assessment of Bankman-Fried’s conduct. The court found that the evidence against him was, in the judge’s words, “conservatively stated, robust.”
The appeals court described the scheme as a “fraud of epic proportions.” Judge Parker wrote that “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 rejected Bankman-Fried’s defense arguments and stated that “FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda regardless of how strongly he believed he might later return the money.”
In its ruling, the court also stated that Bankman-Fried “made a very bad bet about the likelihood of getting caught.”
What We Know So Far
The conviction stems from charges brought against Bankman-Fried following the spectacular collapse of FTX in 2022. A federal jury in Manhattan found him guilty on seven felony charges in 2023. These charges included two counts of fraud and five counts of conspiracy.
According to prosecutors, Bankman-Fried stole $8 billion from FTX customers. The funds were allegedly used to cover losses at Alameda Research, his cryptocurrency hedge fund.
Three of Bankman-Fried’s former deputies pleaded guilty and testified against him during the trial. U.S. District Judge Lewis Kaplan oversaw the trial proceedings.
Bankman-Fried received his 25-year prison sentence at a sentencing hearing in March 2024. He is currently held at a low-security federal prison near Santa Barbara, California. According to his sentence terms, he is eligible for release in 2044.
Pardon Request to President Trump
Beyond the appeals process, Bankman-Fried is also seeking a pardon from President Donald Trump. The outcome of this request remains uncertain, and no public response from the White House or the Justice Department regarding the pardon request has been reported.
It is important to note that Bankman-Fried has not received a pardon. He is only seeking one at this time.
What Happens Next
While the 2nd U.S. Circuit Court of Appeals has rejected Bankman-Fried’s appeal, the legal process may not be definitively over. His lawyers could potentially appeal to the full 2nd Circuit or to the Supreme Court.
No response from Bankman-Fried’s lawyers regarding the Friday ruling has been reported. During his trial, Bankman-Fried testified that he never stole funds from customers.
Absent any successful legal challenge or executive clemency, Bankman-Fried will remain incarcerated at the federal facility near Santa Barbara until his eligibility for release in 2044.
Important Details About the Case
The FTX collapse in 2022 sent shockwaves through the cryptocurrency industry. At the time, FTX was one of the largest cryptocurrency exchanges in the world, and Bankman-Fried was widely regarded as a leading figure in the digital currency space.
The case involved seven felony charges that prosecutors successfully proved to a jury. The specific charges broke down as follows: two counts of fraud and five counts of conspiracy.
The $8 billion figure represents the amount prosecutors said was stolen from FTX customers. These funds were allegedly diverted to Alameda Research to cover trading losses at the hedge fund.
Three former deputies who worked with Bankman-Fried chose to cooperate with prosecutors. They pleaded guilty to their own charges and provided testimony against Bankman-Fried during the trial. Their identities were not specified in available information.
Timeline of Key Events
The case has unfolded over several years. FTX collapsed in 2022, triggering the federal investigation that led to Bankman-Fried’s arrest and prosecution.
In 2023, a federal jury in Manhattan convicted Bankman-Fried on all seven felony charges following a trial overseen by U.S. District Judge Lewis Kaplan.
The sentencing hearing took place in March 2024, when Bankman-Fried received his 25-year prison sentence. He was subsequently transferred to the low-security federal prison near Santa Barbara, California.
The appeals court ruling came on Friday, June 12, 2026, when the three-judge panel unanimously rejected his bid to overturn the conviction.
Frequently Asked Questions
How long is Sam Bankman-Fried’s prison sentence?
Sam Bankman-Fried received a 25-year prison sentence. He is eligible for release in 2044 and is currently held at a low-security federal prison near Santa Barbara, California.
What charges was Sam Bankman-Fried convicted of?
Bankman-Fried was convicted on seven felony charges, including two counts of fraud and five counts of conspiracy. Prosecutors said he stole $8 billion from FTX customers to cover losses at Alameda Research.
Can Sam Bankman-Fried still appeal his conviction?
While the 2nd U.S. Circuit Court of Appeals rejected his appeal, his lawyers could potentially appeal to the full 2nd Circuit or to the Supreme Court. The case is not definitively over, though he remains incarcerated.
Is Sam Bankman-Fried seeking a presidential pardon?
Yes, Bankman-Fried is seeking a pardon from President Donald Trump. However, he has not received a pardon, and no response from the White House or Justice Department regarding the request has been reported.
When did FTX collapse?
FTX collapsed in 2022. The cryptocurrency exchange’s failure led to the federal investigation and subsequent prosecution of founder Sam Bankman-Fried.
The appeals court ruling marks another chapter in one of the largest financial fraud cases in recent years. Bankman-Fried remains at the federal facility near Santa Barbara as the legal process continues and his pardon request awaits a response.
