FTX founder Sam Bankman-Fried, currently serving a 25-year sentence for orchestrating what prosecutors described as one of the largest financial frauds in U.S. history, is asking a federal appeals court to overturn his conviction. His legal team is set to present arguments before the 2nd U.S. Circuit Court of Appeals in Manhattan on Tuesday, contending that the former billionaire did not receive a fair trial.
Bankman-Fried, 33, was convicted in 2023 on seven criminal counts, including wire fraud and conspiracy, for stealing roughly $8 billion from FTX customers and investors. The Manhattan jury concluded that he had funneled client deposits to cover losses at his trading firm, Alameda Research, and to fund speculative investments, political donations, and luxury real estate purchases.
Defense argues key evidence was excluded
According to filings, Bankman-Fried’s attorneys will argue that the trial judge improperly restricted evidence showing that the FTX founder believed the exchange had sufficient funds to meet customer withdrawals. They claim that excluding this evidence prevented jurors from fully understanding his state of mind and undermined his defense.
“The jury was denied the chance to hear evidence that would have directly supported Mr. Bankman-Fried’s good-faith belief in FTX’s solvency,” the defense said in a pre-hearing brief.
Prosecutors, however, maintain that the verdict was supported by overwhelming proof, including internal records and testimony from three of Bankman-Fried’s closest associates, who took plea deals and detailed his role in directing the misuse of billions in customer funds.
Fallout and political dimensions
Before his downfall, Bankman-Fried had been one of the most prominent figures in the cryptocurrency industry, cultivating a reputation as a responsible innovator and major political donor. His arrest in December 2022 sent shockwaves through global financial markets and intensified calls for stricter crypto regulation.
He was sentenced in March 2024 by U.S. District Judge Lewis Kaplan, who described the crime as “a calculated scheme built on deception.” Kaplan noted that Bankman-Fried “knew exactly what he was doing” and had “made a very bad bet about the likelihood of getting caught.”
Bankman-Fried’s inner circle has reportedly sought a presidential pardon from Donald Trump, though the former president has not publicly addressed the issue. Reuters has not independently verified those reports.
The former executive is serving his sentence at a low-security federal prison in California and is not eligible for release until 2044.