Second Circuit Upholds Sam Bankman-Fried’s FTX Fraud Conviction
The Second Circuit upheld Bankman-Fried’s 2023 fraud conviction and 25-year sentence.
Why it matters: This ruling solidifies legal precedent for prosecuting crypto fraud, underscoring risks in fintech and reinforcing regulatory enforcement in the crypto sector.
- The appellate court ruled on June 12, 2026, affirming Bankman-Fried's conviction for defrauding FTX customers and investors.
- Bankman-Fried was convicted on seven counts of fraud and conspiracy related to FTX’s November 2022 collapse, causing over $11 billion in losses.
- The court found the government’s evidence 'robust' and rejected claims that the trial was unfair due to evidence limitations.
- Bankman-Fried has sought a presidential pardon from Donald Trump, who has stated he does not intend to grant one.
On June 12, 2026, the U.S. Court of Appeals for the Second Circuit upheld Sam Bankman-Fried’s 2023 conviction on seven counts of fraud and conspiracy tied to the FTX cryptocurrency exchange collapse. The appeals court found the government’s evidence against Bankman-Fried "robust," confirming that he defrauded customers and investors of billions of dollars in what the court described as using FTX funds "as his own personal piggy bank," including spending on real estate and political activities.
The 2022 failure of FTX left customers and investors short over $11 billion, a collapse that precipitated the criminal proceedings against Bankman-Fried. At sentencing, he received a 25-year prison term and was criticized by Judge Lewis A. Kaplan for perjury and evasiveness during testimony.
Bankman-Fried had argued his trial was unfair due to restrictions on his ability to present evidence, but the Second Circuit rejected this claim, affirming the trial's fairness. Despite Bankman-Fried’s public denials that he stole customer funds and claims of repayment to customers, the court maintained the validity of the guilty verdict.
Separately, Bankman-Fried has applied for a presidential pardon from former President Donald Trump. Though he expressed willingness to accept a pardon, Trump has publicly stated he has no intention of granting one.
This ruling reinforces the consequences for crypto executives in cases involving fraud and signals continued judicial scrutiny in the fintech space.
By the numbers:
- $11 billion — losses from FTX collapse in November 2022
- 25 years — Bankman-Fried’s prison sentence in 2023
- 7 counts — fraud and conspiracy convictions upheld by the Second Circuit
What's next: Bankman-Fried’s presidential pardon application remains pending with no indication of progress.