Appeals Court Upholds Bankman‑Fried’s 25‑Year Sentence

A three‑judge panel of the U.S. Court of Appeals for the Second Circuit in Manhattan on June 12, 2026 denied Sam Bankman‑Fried’s appeal and affirmed his 25‑year prison sentence for fraud in connection with the $8 billion collapse of the FTX cryptocurrency exchange. The ruling upheld a 2023 jury conviction on seven felony counts, including wire fraud and conspiracy.

The panel left in place the prison term imposed by U.S. District Judge Lewis Kaplan after the judge found that Bankman‑Fried misappropriated customer funds. A federal jury convicted Bankman‑Fried in November 2023 following less than five hours of deliberation. At his March 28, 2024 sentencing, Judge Kaplan described the scheme as a “very bad bet” on not getting caught.

Defense lawyers argued at trial and on appeal that the trial judge had improperly excluded evidence they said would have shown FTX remained solvent and could meet customer withdrawals. Prosecutors responded that testimony from former executives at FTX and Alameda Research showed Bankman‑Fried directed transfers of customer money to cover losses at Alameda.

Bankman‑Fried has acknowledged operational mistakes in the company’s collapse but has maintained he did not intend to steal customer funds. He is serving his sentence at a low‑security federal prison near Santa Barbara, California, with a projected release date in 2044. His legal team may seek a rehearing before the full Second Circuit or file a petition to the U.S. Supreme Court.

FTX’s failure in November 2022 erased billions in customer and investor value and triggered criminal and civil investigations. Bankruptcy proceedings that followed have enabled recoveries for many customers, and the court‑appointed trustee has overseen asset sales and settlements aimed at returning funds to creditors.

Regulators and lawmakers increased scrutiny of centralized crypto platforms after the collapse and pursued enforcement actions and legislative proposals focused on investor protection and custody rules. The appeals court’s decision resolves the most recent stage of criminal appeals in the case tied to FTX’s collapse.