Second Circuit Mandate Upholds SBF Conviction, 25-Year Term

The U.S. Court of Appeals for the Second Circuit filed a formal mandate Tuesday affirming the conviction and 25-year federal sentence of former FTX CEO Sam Bankman-Fried on seven felony counts.

The mandate follows the court’s June 12 ruling that rejected defense arguments that FTX had adequate liquidity to cover customer losses and that any diversion of funds was temporary because Bankman-Fried planned to repay users.

Circuit Judge Barrington D. Parker wrote in the opinion that claiming an absence of intent to defraud because of a future plan to repay was ‘legally misleading and prejudicial.’ He added that federal wire fraud law covers temporary misuse of money or property and that customers were defrauded when their assets were transferred to Alameda Research.

The appeals court also affirmed an $11 billion forfeiture order imposed by a New York federal judge. The government ties that amount to funds it says were misused in the collapse of FTX and related entities.

With the mandate now official, Bankman-Fried has limited options to challenge the conviction. He may petition the U.S. Supreme Court for discretionary review or seek executive clemency.

President Donald Trump indicated in January he had no plans to pardon Bankman-Fried. The U.S. Senate last month unanimously approved a resolution opposing clemency for the former CEO.

Bankman-Fried was convicted in a lower court on counts of fraud and conspiracy after prosecutors accused him of diverting customer funds from FTX to cover losses and risky investments at Alameda Research. He was sentenced to 25 years and ordered to forfeit assets tied to the case.