What to know:
- SBF appeal denied as the Second Circuit upholds his 25-year fraud sentence in a Friday ruling.
- Court says FTX customers were defrauded once funds moved to Alameda Research accounts.
- Bankman-Fried still seeks clemency while prison release remains scheduled for 2044.
SBF appeal denied after a federal appeals court upheld Sam Bankman-Fried’s 2023 fraud conviction and 25-year prison sentence on Friday. The ruling leaves the former FTX chief with fewer legal options. A separate presidential pardon request remains pending through clemency.
According to the report, the U.S. Court of Appeals for the Second Circuit issued the decision through a three-judge panel. The judges unanimously rejected Bankman-Fried’s challenge to the verdict. The case stemmed from the collapse of the FTX cryptocurrency exchange.
Also Read: Sam Bankman-Fried’s 2026 Pardon Request Puts FTX Legacy Back in Focus
Court Upholds FTX Fraud Findings
Judge Barrington Parker stated that the prosecution provided strong evidence during the trial. The court held that there was evidence in the trial record that supported the jury’s conclusion. Furthermore, the court agreed with the government’s description of the use of customer funds.
The ruling said that Bankman-Fried told the customers, investors, and the regulatory authority about the safety of the assets of FTX. The prosecutors had proved that the money was used for expenses, charity donations, investments, and even purchasing properties. SBF appeal denied now leaves that trial record in place.
According to federal prosecutors in Manhattan, Bankman-Fried diverted the customer’s fund from FTX to his own company called Alameda Research. The defendant established the crypto trading company, Alameda Research. Prosecutors referred to the act as an immense fraud.
Bankman-Fried faced a federal court conviction in 2023 for seven charges, which included conspiracy and fraud. According to prosecutors, an estimated $8 billion from customer deposits was misappropriated by Bankman-Fried. This case became one of the largest criminal cases tied to crypto.
SBF Appeal Denied as Judges Dismiss Argument
An appeal submitted by Bankman-Fried failed, along with another defense claim that evidence used in his conviction was unfavorable to him.
Bankman-Fried’s lawyers claimed U.S. District Judge Lewis Kaplan restricted materials that could aid in the process, which would prove that he trusted the company could make withdrawals.
However, this claim was not accepted by the appeals court because fraud is defined as obtaining property or money through deception. The court added that a later belief in repayment does not cancel the original misconduct.
FTX clients were defrauded as the money moved to Alameda, according to the panel. Therefore, this conclusion does not depend on any later trust by Bankman-Fried that he could pay back the money.
At trial, Bankman-Fried acknowledged failures in management at FTX. He refuted claims of stealing customers’ funds and entered a plea of “not guilty” on all counts. This testimony failed to convince the jury or appeals court.
SBF Appeal Denied as Prison Term Continues
This latest development has come after several attempts by Bankman-Fried to secure another trial. According to court documents, SBF had made a Rule 33 filing on the grounds of newly discovered evidence and testimony. Bankman-Fried withdrew the request before Judge Kaplan declined the motion in April.
Denied SBF appeal does not close off all options for Bankman-Fried beyond a court ruling. The Justice Department documents reveal that Bankman-Fried filed a pardon application in a bid for executive clemency.
The denial of SBF appeal means Bankman-Fried continues his prison term at the minimum security federal penitentiary in Los Padres National Forest, near Santa Barbara, California.
According to records from the Federal Bureau of Prisons, he is now 34 years old. He is currently scheduled for release in 2044.
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