%22 d=%22M44,140.1h42.8V272H54.9c0-0.1,0-103.8,0-103.8H44V140.1z M44,1c28.4,0,42.6,16.2,42.6,42.2v66.1H54.9V43.8 c0-7.2-3.1-11.7-10.6-11.7c-7,0-10.6,4.2-10.6,11.7c0,0,0,228.1,0,228.2H0.2c0-0.5,0-228.8,0-228.8C0.1,16.8,14.8,1,44,1L44,1z%22/><style>path { fill: %23262626 } @media (prefers-color-scheme: dark) { path { fill: %23EEEFE9 } }</style></svg>)
Appeals court upholds Sam Bankman-Fried's fraud conviction and sentence
A federal appeals court has unanimously upheld Sam Bankman-Fried's fraud conviction and 25-year prison sentence, rejecting his attempt to overturn the verdict over the collapse of FTX. The three-judge panel of the 2nd U.S. Circuit Court of Appeals ruled that prosecutors' evidence was "robust" and that Bankman-Fried defrauded customers the moment he diverted their funds to Alameda Research, regardless of his intent to repay them Source: Al Jazeera.
The Appeal Arguments
Bankman-Fried's defense argued that the trial judge improperly excluded evidence showing he believed FTX had sufficient funds to cover withdrawals. The appeals court dismissed this, noting that fraud is complete when a defendant trick someone into handing over money Source: Al Jazeera. The panel also rejected claims that the trial was unfair.
What's Next
Bankman-Fried's legal team may request a full 2nd Circuit review or appeal to the U.S. Supreme Court. Separately, he is reportedly seeking a pardon from President Donald Trump, who previously pardoned Binance founder Changpeng Zhao Source: Al Jazeera. If all avenues fail, Bankman-Fried remains eligible for release in 2044 Source: Al Jazeera.
- The 2023 jury found Bankman-Fried guilty on seven counts of fraud and conspiracy, including stealing $8 billion from FTX customers Source: Al Jazeera.
- At sentencing, the judge noted Bankman-Fried knew his actions were wrong but "made a very bad bet about the likelihood of getting caught" Source: Al Jazeera.
Sources
3 quotes“"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," Circuit Judge Barrington Parker wrote on behalf of the panel.”
“"FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda regardless of how strongly he believed he might later return the money," Parker wrote.”
“Once, Sam Bankman-Fried was celebrated as a financial genius and figurehead of a future world of digital money. With an objection to his conviction as a fraud, he now flashes into court.”