Bankman-Fried's FTX Conviction Upheld, Rejecting Bid to Overturn Sentence

Sam Bankman-Fried's attempt to overturn his conviction for fraud in the collapse of cryptocurrency exchange FTX has been rejected by a three-judge panel. The Manhattan-based 2nd US Circuit Court of Appeals unanimously agreed with prosecutors that evidence against Bankman-Fried was robust.

The court ruled that Bankman-Fried used FTX customer funds as his 'own personal piggy bank' to purchase real estate, make political contributions, and invest in other ventures. This occurred while he publicly reassured customers, investors, and regulators that their funds were safe.

Bankman-Fried is serving a 25-year prison sentence for stealing $8 billion from FTX customers to plug losses at his crypto-focused hedge fund, Alameda Research. The appeals court disagreed with Bankman-Fried's defense lawyers, who argued that US District Judge Lewis Kaplan improperly prevented the introduction of evidence supporting the defendant's claim that FTX had enough funds to cover customer withdrawals.

The appeals court found that fraud occurs when a defendant tricks someone into handing over money or property, even if they intend to eventually make the victim whole. Bankman-Fried is eligible for release in 2044 and has also sought a pardon from President Trump.