Sam Bankman-Fried lost his bid to overturn his 2023 conviction for fraud and conspiracy related to the collapse of the FTX cryptocurrency exchange he founded. A three-judge panel of the Manhattan-based 2nd US Circuit Court of Appeals issued the ruling on June 12, 2026, rejecting his appeal and upholding the 25-year sentence [1, 2, 3, 4, 5].
Bankman-Fried was convicted on seven felony counts including fraud and conspiracy. Prosecutors said he stole about $8 billion in customer funds in what they described as a “fraud of epic proportions” [1, 3, 4]. FTX’s November 2022 collapse left customers and investors short over $11 billion [2].
At the original March 2024 sentencing hearing, Judge Lewis Kaplan said Bankman-Fried “made a very bad bet about the likelihood of getting caught,” and acknowledged the defendant knew his actions were wrong [1, 3, 4].
Bankman-Fried’s defense argued the trial was unfair, claiming the judge improperly limited evidence that could show FTX had enough funds to cover customer withdrawals. The appeals court rejected these claims, citing strong evidence including testimonies from former deputies who admitted diverting customer funds to cover losses at Alameda Research [1, 2, 3, 4].
The appeals panel stated, “The government’s evidence against him was, conservatively stated, robust,” and noted Bankman-Fried was “publicly reassuring customers, investors, and regulators that FTX customer funds were safe” while “using FTX as his own personal piggy bank” to pay for real estate, political donations, and investments [1, 2].
Bankman-Fried, once a multibillionaire and prominent cryptocurrency figure known for philanthropy and political donations, is currently held at a low-security federal prison near Santa Barbara, California. He is eligible for release in 2044 [1, 3, 4].
The 2nd Circuit heard oral arguments on the appeal in November 2025 before issuing its final ruling this month [2].
