Sam Bankman-Fried has asked the U.S. Supreme Court to review his conviction and the $11 billion forfeiture tied to the collapse of FTX. His lawyers argue that evidence about customer losses was wrongly used against him, an argument the Second Circuit Court of Appeals already rejected once.
Sam Bankman-Fried has taken his fight over an $11 billion forfeiture to the U.S. Supreme Court, asking the justices to revisit both his criminal conviction and the penalty. His argument centers on whether FTX customers actually suffered an economic loss.
Evidence at the center of the appeal
Prosecutors presented evidence showing that customers lost large sums when their funds were transferred to Alameda Research. However, Bankman-Fried's lawyers argue that this evidence was misleading and prejudicial, since the government's legal theory did not require prosecutors to prove customers lost money.
Veteran Supreme Court attorney Jeffrey Fisher told CNN that introducing evidence of customer losses was distracting under that theory, adding that it mattered even more since the defendant could not clarify that victims did not lose money.
Bankman-Fried also claims that FTX customers' losses could have been offset, arguing that Alameda's investments allegedly had enough value to cover the liabilities. His lawyers wanted to present that evidence, but the effort failed.
A second rejection already on record
This is not the first time the argument has surfaced. In June 2026, the Second Circuit Court of Appeals reviewed Bankman-Fried's conviction and rejected his arguments, stating "We are unpersuaded." The ruling also noted that no one had opted into having their money transferred under false pretenses to Alameda.
Bankman-Fried is separately challenging the $11 billion forfeiture under the Eighth Amendment, arguing it could leave him with a lifelong burden. Prosecutors, however, view the forfeiture as a way to recover assets tied to wrongdoing at the cryptocurrency exchange, not as a fine.
The petition follows Bankman-Fried's decision to withdraw his request for a new trial in April, when he said he did not believe he would get a fair hearing before Judge Lewis Kaplan, who presided over his original trial.
Source: AMBCrypto
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