Former FTX CEO Sam Bankman-Fried has lost his appeal seeking a new trial, with a federal appeals court upholding his fraud conviction and 25-year prison sentence.

What Happened

On Friday, the U.S. Court of Appeals for the Second Circuit affirmed the conviction of Sam Bankman-Fried, rejecting arguments that he was denied a fair trial and improperly prevented from presenting key evidence.

The decision leaves intact the verdict reached by a New York jury in November 2023, which found Bankman-Fried guilty on seven counts of fraud and conspiracy tied to the collapse of cryptocurrency exchange FTX, The Block reported.

Prosecutors characterized the scheme as one of the largest financial frauds in recent history, drawing comparisons to the Ponzi scheme run by Bernie Madoff.

Appeals Court Rejects Defense Arguments

Bankman-Fried argued that FTX customers could ultimately have been made whole and that the trial court improperly excluded evidence supporting his defense.

The three-judge appeals panel disagreed.

"The overwhelming evidence presented at trial proved that Bankman-Fried knowingly and intentionally committed large-scale fraud on FTX's customers," the court wrote.

The judges said evidence showed Bankman-Fried publicly assured customers, investors and regulators that customer funds were safe while simultaneously using those funds for real estate purchases, political donations and investments.

The court also rejected claims that the trial judge, Judge Lewis Kaplan, unfairly restricted defense evidence.

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