On Tuesday, August 4, the US Court of Appeals for the Second Circuit turned down Sam Bankman-Fried’s (SBF) appeal to overturn his conviction and 25-year prison sentence.
The former FTX founder and CEO was convicted of several counts of fraud, conspiracy, and money laundering in March 2024. He was sentenced to 25 years in federal prison and ordered to forfeit $11 billion in financial penalties. He also gets 3 years of supervised release at the end of his prison term (year 2044).
In the latest court proceedings, Bankman-Fried’s lawyers argued that the 2023 trial was unfair and biased. They also put forward a “No Intent to Harm” defence, saying clients’ investments would have eventually paid off.
In spite of these, the prosecution successfully argued that fraud occurred during the initial misappropriation of funds, and could not be overturned just because he intended to pay back the money.
Therefore, the three-judge panel unanimously ruled against Bankman-Fried, noting his status at the former colossal crypto exchange as the “driving force” behind the multi-million dollar scheme. Judge Barrington Parker specifically stated that the government’s evidence against him was “conservatively stated, robust.”
For now, the former crypto mogul (Forbes estimated $26 billion net worth prior to FTX collapse) remains at a low-security federal prison near Santa Barbara, California. He now has two Hail Marys to call before he is forced to serve his sentence.
Since Bankman-Fried has exhausted his lower court appellate options, he now remains with the highest court in the land – the Supreme Court.
Another option would be to continue with his June 2026 heavily publicized campaign to gain a presidential pardon, similar to the ones given to Binance CEO Changpeng Zhao and former BitMEX CEO Arthur Hayes. Here, he shifts the blame to bankruptcy lawyers and witness tampering.
This second option has hit several roadblocks, with the first being President Donald Trump’s denial of a pardon. The second is a bipartisan resolution by the US Senate to deny SBF a pardon or commutation under any circumstances. Congress agrees that he used client investments to fund a lavish lifestyle and should therefore serve his time.
A final choice would be to call for a pardon of his charges after he serves his prison term.
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