The U.S. Court of Appeals for the Second Circuit has formally affirmed the conviction and sentencing of Sam "SBF" Bankman-Fried, the former CEO of FTX. The lower court had convicted him on seven felony counts and sentenced him to 25 years in federal prison. A three-judge panel rejected Bankman-Fried's appeal arguments that FTX had sufficient liquidity and that investors would be fully repaid with no losses. The panel also upheld the $11 billion forfeiture order issued by the New York court in the criminal case. In the opinion, Circuit Judge Barrington D. Parker wrote that even if Bankman-Fried believed he would eventually repay customers, that does not affect the application of wire fraud law to the temporary misappropriation of funds or property. With the order now in effect, Bankman-Fried's legal avenues for early release have narrowed, leaving options such as a presidential pardon or an appeal to the U.S. Supreme Court.
Appeals court upholds conviction and sentence
The U.S. Court of Appeals for the Second Circuit issued a formal order, affirming the conviction and sentencing of former FTX CEO Sam "SBF" Bankman-Fried. The lower court had convicted him on seven felony counts and imposed a 25-year federal prison term.
Judges reject liquidity claims, uphold $11 billion forfeiture
A three-judge panel rejected Bankman-Fried's arguments that FTX had sufficient liquidity, that investors would be fully repaid, and that no losses would occur. The panel also upheld the $11 billion forfeiture order issued by the New York court in the criminal case.
Circuit Judge Barrington D. Parker wrote in the opinion that even if Bankman-Fried believed he would eventually repay customers, that belief does not change the applicability of wire fraud law to the temporary misappropriation of funds or property.
With the order now in effect, Bankman-Fried's legal options for early release have narrowed. His remaining avenues include a presidential pardon or an appeal to the U.S. Supreme Court.
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