The US Court of Appeals for the Second Circuit has affirmed Sam Bankman-Fried’s conviction and sentenced him to 25 years in federal prison following a rejection of his arguments concerning FTX investors. The court also confirmed an order authorizing the forfeiture of $11 billion.
Former FTX CEO, Sam “SBF” Bankman-Fried, was convicted on seven felony counts relating to criminal charges surrounding the collapse of the cryptocurrency exchange. He received a sentence of 25 years from the federal prison system. This outcome follows a ruling by three circuit judges who challenged SBF’s assertions regarding the intentions behind FTX’s operations and its relationship with investors.
Circuit Judge Barrington D. Parker, one of the dissenting judges, argued that Bankman-Fried’s claims about intending to repay customers were legally misleading and prejudiced the proceedings. The court determined this stance was not a valid defence against the charges of wire fraud.
The Second Circuit Court of Appeals confirmed the upholding of a $11 billion forfeiture order, impacting assets connected to FTX and its affiliated trading company, Alameda. This decision effectively closes many avenues for potential early release for Bankman-Fried.
US President Donald Trump stated in January that he had no plans to issue a pardon for Bankman-Fried, a position maintained following the court’s ruling. The US Senate continues to investigate the circumstances surrounding FTX and associated financial activities.
Approximately $900 million was distributed in a recent round. Bankman-Fried now has limited legal pathways towards gaining an earlier release from prison.
Written by Steven Cook
Regulation Desk
