Sam Bankman-Fried will serve his full 25-year prison sentence. The US Court of Appeals for the Second Circuit has upheld his conviction on seven counts of fraud and conspiracy, affirming both the incarceration term and an $11 billion forfeiture order.
The appellate court described the prosecution’s case as robust in a decision handed down June 12. Defense attorneys had argued that Judge Lewis Kaplan improperly restricted evidence regarding legal advice and FTX solvency while exhibiting judicial bias. The three-judge panel found no reversible error, concluding the trial maintained sufficient balance between prosecution and defense.
Bankman-Fried was convicted in November 2023 after FTX collapsed by funneling customer deposits to Alameda Research. The charges included wire fraud, securities fraud, commodities fraud, and money laundering conspiracy. Judge Kaplan imposed the 25-year sentence in March 2024, reflecting the massive scale of losses suffered by customers and creditors.
This ruling validates the legal framework treating crypto fraud with the same severity as traditional financial crimes. It stands as the most severe white-collar sentence in the digital asset sector, signaling that commingling funds and misrepresenting financial health carries decades-long consequences.
The affirmed $11 billion forfeiture remains part of the FTX bankruptcy estate for creditor repayment. Bankman-Fried’s remaining options are narrow, limited to an en banc rehearing or a Supreme Court petition that faces significant statistical odds against acceptance.