Sam Bankman-Fried Loses Appeal As 25-Year FTX Sentence Stands

Sam Bankman-Fried has lost his attempt to overturn his fraud conviction and 25-year prison sentence, leaving one of crypto’s largest criminal cases intact nearly four years after FTX collapsed.

A three-judge panel of the 2nd U.S. Circuit Court of Appeals unanimously upheld the conviction tied to the collapse of FTX and Alameda Research. The ruling rejected Bankman-Fried’s argument that the trial was unfair because U.S. District Judge Lewis Kaplan limited evidence he wanted to present about FTX’s ability to cover customer withdrawals.

The decision keeps the 2023 jury verdict in place. Bankman-Fried was convicted on seven felony counts, including wire fraud and conspiracy charges, after prosecutors said he misused billions of dollars in FTX customer funds to cover Alameda losses, finance investments, buy real estate and fund political contributions.

The FTX founder’s separate pardon request remains pending outside the court process. The appeal loss does not decide the clemency question, but it removes his main direct appellate challenge for now unless his lawyers ask the full Second Circuit to rehear the case or seek review at the U.S. Supreme Court.

Repayment Arguments Fail To Shift The Case

The appeals court rejected the defense’s attempt to lean on whether FTX customers could later be repaid. The panel held that fraud can be complete when a defendant deceives someone into handing over money or property, even if the defendant believes the money might eventually be returned.

That point cuts directly into one of Bankman-Fried’s central post-conviction arguments. FTX’s bankruptcy estate has recovered substantial value, and customer repayment has remained a major part of the exchange’s legal fallout. Former customers have also pursued outside recovery routes, including a recent FTX settlement track involving Fenwick & West and Prager Metis.

Those recovery efforts do not erase the criminal findings. The Justice Department’s sentencing record said Bankman-Fried was sentenced to 25 years in prison, three years of supervised release and $11 billion in forfeiture after being found guilty of fraud and conspiracy tied to FTX customers, FTX investors and Alameda lenders.

Pardon And Release Odds Remain Separate

Bankman-Fried’s legal position now sits on two different tracks. The appeals ruling keeps the criminal judgment in force, while his presidential pardon request remains a separate political process handled through the Justice Department’s Office of the Pardon Attorney.

Prediction markets had already priced only a small chance of a custody change in 2026 before the ruling. A recent Polymarket market tied to Bankman-Fried’s possible release showed traders treating an early release as a low-probability outcome even after the pardon filing became public.