Second Circuit Upholds Sam Bankman-Fried's 25-Year Sentence — Appeal Exhausted

Sam Bankman-Fried's last realistic shot at freedom ended Friday when the Second Circuit Court of Appeals in Manhattan upheld his 2023 fraud conviction and 25-year prison sentence in a 42-page ruling that described him as the "main driver of one of the largest frauds on record."

A three-judge panel rejected every argument his defense raised, finding that the evidence against him was "robust" and that the trial judge had acted within proper discretion. The decision effectively closes the direct appeal track for Bankman-Fried, who was convicted in November 2023 on seven felony counts including wire fraud, conspiracy, money laundering, and securities fraud for stealing an estimated $8 billion from FTX customers.

What the Defense Argued — and Why It Failed

Bankman-Fried's lawyers built their appeal around two main claims: that the trial was "fundamentally unfair" and that U.S. District Judge Lewis A. Kaplan improperly restricted his testimony. Specifically, they argued he was wrongly barred from presenting evidence that FTX and its trading arm Alameda Research were not completely insolvent — and that his investments, including a stake in Anthropic, could theoretically have covered customer withdrawals if given time to liquidate.

The appeals court was unmoved. The panel ruled that Judge Kaplan "acted within his broad discretion" in concluding that additional testimony risked confusing or misleading the jury. The $11 billion forfeiture order was also upheld in full.

Where Things Stand Now

With the Second Circuit ruling against him, Bankman-Fried's remaining legal options have narrowed sharply. He can file a habeas corpus petition or petition the Supreme Court — though SCOTUS grants certiorari in fewer than 2% of petitions. He has also reportedly filed a presidential pardon application.

Bankman-Fried, 34, is currently serving his sentence. At 25 years with standard federal good-behavior reductions, he would be in his mid-50s on release.

What It Means for Crypto

The FTX collapse in November 2022 was the defining catastrophe of the last crypto cycle — a $32 billion company that turned out to be run as a personal slush fund. The conviction and failed appeal remove any legal ambiguity: the courts have found it was straightforward fraud, not a risk management failure or accounting mistake.

Several co-conspirators including former Alameda CEO Caroline Ellison cooperated with prosecutors and received reduced sentences. The FTX estate has made meaningful progress toward repaying creditors above the dollar value of their original claims — a rare outcome in large-scale fraud cases.

As reported by The Guardian and Courthouse News, the ruling was issued June 12, 2026.