Appeals court rejects Sam Bankman-Fried's bid for new trial in FTX fraud case

Former FTX CEO Sam Bankman-Fried lost his appeal to overturn his 25-year sentence after accusing the original court of not giving him a fair chance.

On Friday, the U.S. Court of Appeals for the Second Circuit sided with an earlier district court's decision, which found the former executive guilty of seven counts of fraud and conspiracy. 

Sam Bankman-Fried was convicted in November 2023 by a New York jury on all seven counts related to defrauding FTX customers, lenders, and investors. Prosecutors described the scheme as likely the largest financial fraud of the past decade, drawing comparisons to the Ponzi scheme orchestrated by Bernie Madoff.

Bankman-Fried founded both FTX and the hedge fund Alameda Research, which played a central role in the fraud. He was subsequently sentenced to 25 years in prison.

Bankman-Fried filed an appeal requesting a new trial in September 2024. At the time, a lawyer representing the former executive criticized New York Judge Lewis Kaplan's handling of the case and said Bankman-Fried should not have been blocked from introducing certain evidence.

In the order on Friday, a trio of judges disagreed with Bankman-Fried's arguments that customer investments were sound and that liquidity was there to make customers whole as well as his criticism of the court for not being allowed to bring evidence.

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

In late April, a federal judge rejected Sam Bankman-Fried's bid for a new trial, calling key claims in his motion "wildly conspiratorial."

Bankman-Fried has also sought a pardon from President Donald Trump, though the president has said he has no plans to do so.