The US Court of Appeals for the Second Circuit issued a mandate confirming its June ruling. The ruling upheld former FTX CEO Sam Bankman-Fried’s 25-year prison sentence and conviction. It was for seven felony counts. The decision was made by a three-judge panel. It dismissed his argument that FTX had enough liquidity to reimburse investors fully. He claimed it would prevent losses. The court reaffirmed the conclusion that claims about eventual repayment were legally irrelevant. That was to the charges against him.
Circuit Judge Barrington D. Parker emphasized in the opinion that wire fraud includes temporary misappropriation of funds. He noted, “FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda. This was regardless of how strongly he believed he might later return the money.” The court also upheld a $11 billion forfeiture order. It was imposed by a New York court as part of the criminal case.
With the appellate process completed, Bankman-Fried’s remaining legal options are limited to an appeal to the Supreme Court or seeking a pardon. However, both appear unlikely. Former President Donald Trump stated in January he had no plans to issue a pardon, and the US Senate recently passed a resolution opposing clemency for Bankman-Fried. These moves significantly reduce the chance of an early release.
The ruling reinforces the legal consequences for financial fraud, especially in the crypto industry. The court’s decision largely closes a key legal avenue for Bankman-Fried, leaving few options to challenge his sentence. The ruling continues to shape the narrative of accountability in the case, ensuring that restitution efforts remain central to the legal proceedings.