Washington — A three‑judge panel of the U.S. Court of Appeals for the Second Circuit upheld the 25‑year prison term and fraud convictions of Sam Bankman-Fried, the disgraced founder of the collapsed cryptocurrency exchange FTX, rejecting his appeal on Monday.
The court affirmed the lower‑court finding that Bankman-Fried orchestrated a scheme that misled investors and customers, siphoning billions of dollars in customer funds to cover personal expenses and risky bets. The ruling leaves the former billionaire in federal custody with a sentence that rivals the longest in recent financial‑crime history.
Bankman-Fried, who pleaded not guilty to 22 counts including wire fraud and money‑laundering, sought to overturn the verdict on the grounds that the district court had erred in interpreting evidence of his communications with senior executives. “The appellate panel found no reversible error and concluded the record overwhelmingly supports the conviction,” a court spokesperson said.
In a parallel effort, Bankman-Fried’s legal team filed a petition for executive clemency with President Donald Trump, arguing that the sentence is disproportionate compared to those handed down in similar cases. Sources close to the White House indicate that the request faces steep political headwinds, given the administration’s tough stance on white‑collar crime and the high‑profile nature of the FTX collapse.
Analysts note that the appeal’s failure underscores the judiciary’s willingness to impose severe penalties on crypto‑industry leaders who breach fiduciary duties. “The decision sends a clear message that regulators and courts will not tolerate the kind of systemic abuse that led to billions of dollars disappearing from investors,” said a securities‑law expert at a New York law firm.
Federal prosecutors have hailed the outcome as a victory for victims, many of whom continue to seek restitution through ongoing civil litigation. Meanwhile, the Department of Justice has not commented on the clemency petition, and the White House is expected to issue a formal response within the statutory 30‑day window.
Looking ahead, the ruling may influence ongoing and future cases involving cryptocurrency exchanges, prompting stricter oversight and potentially shaping legislative proposals aimed at closing regulatory gaps in the digital‑asset sector.