Court upholds Sam Bankman-Fried conviction

A three-judge panel of the U.S. Court of Appeals for the Second Circuit on June 12, 2026, unanimously upheld Sam Bankman-Fried’s fraud conviction and 25-year federal prison sentence. The decision leaves intact a jury’s 2023 verdict finding him guilty on seven counts of fraud and conspiracy tied to the collapse of the FTX cryptocurrency exchange. The ruling confirms the punishment imposed in federal court and maintains his long-term incarceration.

The opinion, written by Circuit Judge Barrington Parker, described the government’s evidence against Bankman-Fried as “was, conservatively stated, robust.” The panel concluded that the trial record supported the jury’s findings and that the conviction and sentence did not result from legal or procedural errors that would justify overturning the outcome.

Prosecutors said that roughly $8 billion in FTX customer funds were diverted to cover losses at Alameda Research, a trading firm closely linked to the exchange. The appeals court accepted that account as the basis for sustaining the fraud convictions. The opinion noted that while Bankman-Fried publicly reassured customers, investors and regulators that FTX customer funds were safe, those funds were being used for other purposes including real estate, political contributions and investments.

In addressing the legal standards, the panel emphasized that temporary misappropriation of customer funds can constitute wire fraud. The judges stated that whether assets later appreciate in value is irrelevant to determining whether a fraud occurred. This reasoning undercut defense arguments that any eventual recovery or asset value changes could negate the criminal conduct.

Bankman-Fried’s appeal argued that U.S. District Judge Lewis A. Kaplan improperly excluded evidence that might have shown FTX was solvent or that he lacked intent to defraud. The Second Circuit rejected these claims, holding that the trial court’s evidentiary rulings did not render the proceedings unfair. The panel found no abuse of discretion in limiting certain defense evidence.

The court also dismissed arguments that the jury had an incomplete picture of FTX’s financial condition. By affirming that the core issue was the unauthorized use of customer funds, not the later value of related assets, the judges concluded that the record sufficiently supported the jury’s determination of intent and wrongdoing.

Although the conviction and sentence have been affirmed, Bankman-Fried still has remaining legal options. He may request an en banc rehearing by all active judges of the Second Circuit. He may also petition the U.S. Supreme Court to review his case, though the high court has discretion over whether to hear such appeals.

Separately, the Justice Department’s Office of the Pardon Attorney lists a request from Bankman-Fried for a presidential pardon submitted earlier in 2026. While that process is distinct from the appeals system, it underscores that he is pursuing multiple avenues for relief. In the meantime, Bankman-Fried is being held at a low-security federal prison near Santa Barbara, California, where he continues to serve his 25-year federal sentence.