Appeals Court Upholds Bankman‑Fried’s 25‑Year Sentence

A three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan unanimously rejected former FTX CEO Sam Bankman‑Fried’s appeal, upholding his 25‑year prison sentence for fraud and conspiracy tied to the exchange’s collapse.

The court described the government’s case as “conservatively stated, robust.” Circuit Judge Barrington Parker wrote that while Bankman‑Fried publicly reassured customers, investors and regulators that FTX customer funds were safe, he used the exchange “as his own personal piggy bank,” spending customer funds on real estate, political contributions and investments.

Bankman‑Fried was convicted in 2024 on counts including wire fraud, securities fraud and conspiracy and was sentenced to 25 years in prison. The appeals ruling leaves that sentence intact and ends this stage of his challenge to the federal verdict in Manhattan.

He has applied for a presidential pardon through the Department of Justice’s Office of the Pardon Attorney and has described himself in interviews as “absolutely” seeking a pardon from President Donald Trump. The White House has not commented on the clemency filing, and the president previously indicated he would not pardon Bankman‑Fried.

At trial, prosecutors argued that Bankman‑Fried diverted customer deposits to cover losses at Alameda Research and to fund political donations, personal investments and property purchases. The government presented testimony and documents the appeals court found sufficient to support the convictions.

FTX collapsed in late 2022 after a liquidity shortfall and revelations about related trading operations triggered a run on the exchange and led to bankruptcy. The collapse generated criminal prosecutions, civil claims and bankruptcy proceedings as customers and creditors seek recoveries.

Defense lawyers raised claims of trial error and fairness concerns, but the appeals court found no reversible mistakes that would warrant a new trial or resentencing. With direct federal appeals now limited, further legal options are likely to focus on procedural petitions or clemency.