Summary:

A U.S. federal appeals court has upheld Sam Bankman-Fried's fraud conviction and 25-year prison sentence, rejecting his attempt to overturn the verdict.
The three-judge panel described the government's case as "conservatively stated, robust," finding no basis to reverse the conviction.
The ruling comes just days after Bankman-Fried formally sought a presidential pardon from Donald Trump, adding another front to his legal battle.
Trump previously said he has no plans to pardon the former FTX CEO, making the clemency request an uphill fight.
The decision marks another major setback for the former crypto executive behind one of the industry's biggest financial collapses.

Sam Bankman-Fried has lost his latest effort to overturn the conviction that sent him to prison for one of the largest fraud cases in cryptocurrency history. A three-judge panel of the 2nd U.S. Circuit Court of Appeals in Manhattan unanimously rejected the former FTX CEO's appeal, leaving both his fraud conviction and 25-year prison sentence unchanged. The ruling reinforces the outcome of his 2023 criminal trial and represents another significant defeat in his ongoing legal fight. According to Reuters, the appeals court found that prosecutors presented overwhelming evidence throughout the trial, describing the government's case as, in its own words, "conservatively stated, robust." The court also addressed Bankman-Fried's conduct while leading FTX, pointing to the contrast between his public assurances and the way customer funds were handled behind the scenes. Circuit Judge Barrington Parker wrote:

"While he was publicly reassuring customers, investors and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments." Source

The ruling effectively closes one of Bankman-Fried's most important legal challenges. His defense team had argued that errors during the original trial justified reversing the conviction or granting a new trial. The appeals panel, however, found no reason to disturb the jury's verdict. Bankman-Fried was sentenced in 2024 after being convicted on multiple counts of fraud and conspiracy related to the collapse of FTX and its affiliated trading firm, Alameda Research. Prosecutors argued that billions of dollars in customer funds were improperly diverted to finance investments, political donations, luxury real estate purchases and trading activities. The collapse of FTX in late 2022 remains one of the defining moments in crypto history. Once regarded as one of the world's largest cryptocurrency exchanges, FTX filed for bankruptcy after a liquidity crisis exposed significant gaps in how customer assets had been managed. The failure triggered losses for millions of users worldwide, accelerated regulatory scrutiny of digital asset platforms and reshaped public perception of centralized crypto exchanges. For many legal observers, the appeals court's decision reinforces the strength of the government's case and signals that future attempts to overturn the conviction may face increasingly difficult odds.

Presidential pardon becomes Bankman-Fried's remaining path

While the appeals process has delivered another setback, Bankman-Fried continues pursuing a separate strategy outside the courtroom. As CotiNews recently reported, the former FTX executive formally submitted a request for a presidential pardon to U.S. President Donald Trump. The application appeared on the U.S. Department of Justice Office of the Pardon Attorney website in early June, confirming that Bankman-Fried is seeking executive clemency while continuing his legal efforts. In a recent interview with Fox Business, Bankman-Fried confirmed that he was "absolutely" pursuing a presidential pardon. Even so, political support for that request appears limited. Earlier this year, Trump addressed the possibility directly during an interview with The New York Times, making his position clear.

"No, I don't plan to." Source

A White House spokesperson also declined to comment publicly on the pending clemency request, referring Bloomberg to the president's earlier remarks. Although the response does not formally rule out future action, it suggests that Bankman-Fried currently faces long odds in obtaining presidential relief. Presidential pardons remain entirely discretionary. A sitting president is not required to follow recommendations from the Department of Justice and may grant or deny clemency requests at any time. Trump has previously demonstrated a willingness to issue high-profile pardons, particularly in cases that attract significant public attention. One of the most notable examples came shortly after his return to office, when he granted clemency to Ross Ulbricht, founder of the Silk Road marketplace. Ulbricht had been serving two life sentences plus an additional 40 years after being convicted for operating the dark web platform, which used Bitcoin as its primary payment method. His pardon surprised many legal observers and reignited debate over the scope of presidential clemency powers. That decision has naturally fueled speculation over whether Trump could eventually consider other prominent crypto-related cases. For now, however, there is little public indication that Bankman-Fried's request is receiving similar consideration.

Another Setback in one of Crypto's Biggest Legal Cases

The appeals court decision represents another milestone in the long legal aftermath of FTX's collapse. Since the exchange entered bankruptcy, multiple senior executives have faced criminal charges or reached plea agreements with prosecutors. Former Alameda Research CEO Caroline Ellison, who became one of the government's key witnesses during Bankman-Fried's trial, received a substantially lighter sentence after cooperating extensively with investigators. Other former FTX executives also accepted plea agreements, providing prosecutors with additional evidence about how customer funds were handled inside the company. Bankman-Fried, however, has consistently maintained that he did not intentionally commit fraud and has continued challenging both his conviction and sentence through multiple legal channels.

The latest appellate ruling significantly narrows those options. While additional appeals or extraordinary legal motions remain theoretically possible, successful challenges become considerably more difficult once a federal appeals court unanimously upholds a conviction. That leaves the presidential pardon request as one of the few remaining avenues that could meaningfully alter Bankman-Fried's sentence. Whether that effort gains any traction remains uncertain. For the broader cryptocurrency industry, the case continues to serve as one of its most consequential legal precedents. The FTX collapse reshaped how regulators, lawmakers and investors approach centralized exchanges, custody of customer assets and corporate governance within digital asset companies. Nearly four years after the exchange's collapse, the legal consequences are still unfolding. But with the appeals court now affirming the conviction, one chapter of the case has reached a decisive conclusion.