Former FTX Chief Government Sam Bankman-Fried, who faces fraud fees over the collapse of the bankrupt cryptocurrency change, walks exterior the Manhattan federal court in New York Metropolis, U.S. March 30, 2023.
Amanda Perobelli | Reuters
A federal appeals court has upheld the conviction of cryptocurrency entrepreneur and FTX co-founder Sam Bankman-Fried, discovering that the 2023 trial that led to his 25-year jail sentence was not unfair.
The 2nd U.S. Circuit Court of Appeals in Manhattan mentioned Friday the federal government’s proof in opposition to the as soon as high-profile participant within the cryptocurrency trade was “conservatively said, strong.”
A jury discovered that Bankman-Fried defrauded prospects and traders of billions of {dollars} whereas he operated FTX, as soon as the world’s second-largest cryptocurrency change.
The appeals court mentioned the proof proved that Bankman-Fried reassured FTX prospects whereas additionally transferring billions of {dollars} for his personal use and falsifying enterprise data to hide transactions.
“Whereas he was publicly reassuring prospects, traders, and regulators that FTX buyer funds have been secure, he was concurrently utilizing FTX as his personal private piggy financial institution, spending buyer funds on actual property, political contributions, and investments,” the appeals court wrote.
The 2nd Circuit, which heard oral arguments in November 2025, rejected the protection’s argument that his trial was unfair due to a collection of rulings by the choose that restricted the proof he might current. Decide Barrington D. Parker wrote the three-judge panel’s opinion.
Bankman-Fried, 34, was convicted of fraud and conspiracy in 2023 after a meteoric rise after which dramatic fall within the cryptocurrency universe, the place his firm as soon as marketed throughout the Tremendous Bowl. Bankman-Fried testified earlier than Congress and loved celeb endorsements from stars like quarterback Tom Brady, basketball level guard Stephen Curry and comic Larry David.
FTX collapsed in November 2022, leaving prospects, traders and lenders brief over $11 billion.
At Bankman-Fried’s sentencing, Decide Lewis A. Kaplan criticized the entrepreneur’s trial testimony, saying he repeatedly dedicated perjury on the witness stand in testimony that was “typically evasive, hair-splitting, dodging questions.”
Kaplan additionally mentioned Bankman-Fried shouldn’t be credited as a result of some traders and prospects would possibly recuperate some cash. He famous that prospects misplaced about $8 billion, traders misplaced $1.7 billion and lenders have been shorted by $1.3 billion.
A request for remark was despatched to Bankman-Fried’s lawyer. A prosecutor’s spokesperson declined remark.
