A federal appeals court has closed Sam Bankman-Fried's criminal case, formally putting into effect a ruling that leaves his 25-year prison sentence and $11 billion forfeiture order in place. The panel rejected his argument that FTX's later asset recovery undercuts the fraud case, leaving a Supreme Court petition or presidential clemency as his remaining options.
The U.S. Court of Appeals for the Second Circuit filed its mandate on Aug. 4, putting its June 12 judgment into effect and returning jurisdiction over the case to the lower court. The mandate formally affirms the judgment issued by the U.S. District Court for the Southern District of New York, closing the regular appellate proceeding before the three-judge panel.
A jury convicted Bankman-Fried in November 2023 on seven counts of fraud and conspiracy tied to the collapse of FTX, a cryptocurrency exchange, and its affiliated trading firm, Alameda Research. U.S. District Judge Lewis Kaplan sentenced him to 25 years in federal prison in March 2024 and imposed a forfeiture order of roughly $11 billion.
Panel finds no reversible error
The three-judge appellate panel — Barrington Parker, Eunice Lee and Maria Araújo Kahn — unanimously rejected Bankman-Fried's effort to overturn both his conviction and sentence, finding no reversible error in the trial court's evidentiary decisions or jury instructions. According to the panel: "For the reasons set forth below, we affirm the judgment of the district court." The mandate adds no new legal reasoning; it simply makes the June ruling official.
FTX repayments did not erase the fraud
Bankman-Fried argued the trial court unfairly restricted evidence suggesting FTX held assets that could eventually make customers whole. But the Second Circuit ruled that wire fraud occurred the moment customer funds were transferred to Alameda without authorization, regardless of whether he believed the money could later be repaid. Prosecutors had presented evidence that customer assets funded investments, political donations and real estate purchases while Bankman-Fried publicly claimed the deposits were safe.
Creditor payments continue on a separate track
FTX scheduled its fifth creditor distribution for July 31, with nearly $900 million expected to reach claimants holding approved Convenience and Non-Convenience Class claims. Eligible creditors had to complete the exchange's pre-distribution requirements by the June 16 record date, with Kraken, Payoneer and BitGo among the approved payment providers. Those distributions stem from FTX's Chapter 11 reorganization plan and do not reverse the criminal findings against Bankman-Fried.
Supreme Court or clemency remain his only paths
Bankman-Fried can still ask the Supreme Court to review the case, though the court accepts only a small share of petitions and a filing would not automatically suspend his sentence. Presidential clemency offers another route: Bankman-Fried has said he wants a pardon, but President Donald Trump said in January he was not considering one. In July, the U.S. Senate passed a nonbinding resolution by unanimous consent opposing any pardon, commutation or other clemency for the former FTX executive.
Source: crypto.news
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