Second Circuit Upholds Sam Bankman-Fried’s FTX Fraud Conviction

• The Second Circuit Court of Appeals on June 12, 2026, affirmed Sam Bankman-Fried’s conviction on seven counts of fraud and conspiracy tied to FTX’s collapse.
• A three-judge panel found no reversible error by trial judge Lewis Kaplan and described the government’s evidence as robust, rejecting claims that the trial was unfair.
• Arguments that Bankman-Fried intended to repay customers or that misappropriated funds were invested successfully were ruled irrelevant to fraudulent intent under wire fraud law.
• Bankman-Fried, convicted in November 2023, is serving a 25-year sentence; he requested a pardon from President Trump earlier this week.

The U.S. Court of Appeals for the Second Circuit has upheld former FTX CEO Sam Bankman-Fried‘s criminal conviction on fraud and conspiracy charges, delivering a decisive appellate ruling that affirms the outcome of one of the crypto industry’s most closely watched legal cases.

In a June 12, 2026 opinion, Circuit Judges Parker, Lee, and Kahn unanimously affirmed the judgment of the U.S. District Court for the Southern District of New York, including Bankman-Fried’s conviction and sentence. The panel concluded that he had not demonstrated any abuse of discretion or reversible error by District Judge Lewis Kaplan during the 2023 trial.

The ruling systematically addressed and rejected Bankman-Fried’s core arguments on appeal. These included claims that he was unfairly prevented from arguing he intended to repay customers through profitable investments and that FTX operated as a margin trading platform where some users accepted temporary loss of access to funds.

“Bankman-Fried makes these arguments in the face of a trial at which the government’s evidence against him was, conservatively stated, robust,” the court wrote. The panel further held that “whether the assets purchased by Bankman-Fried appreciated in value is irrelevant as to whether he committed fraud” and that the wire fraud statute covers temporary misappropriation through deceit. Read the full Second Circuit opinion (PDF).

Bankman-Fried was convicted in November 2023 on all seven counts after prosecutors presented evidence that he orchestrated the diversion of customer deposits from FTX to his affiliated trading firm, Alameda Research, without disclosure. He received a 25-year prison sentence in March 2024. The appeals court also upheld the related $11 billion forfeiture order.

The decision comes days after Bankman-Fried formally requested a pardon from President Donald Trump on June 8, 2026. Trump had previously stated in January 2026 that he would not consider pardoning him. Bankman-Fried had also pursued a separate motion for a new trial earlier in 2026, which was later withdrawn without prejudice.

The appellate ruling provides clarity on key legal standards applicable to crypto platforms: fraudulent intent can exist even with claims of eventual repayment, and evidence of post-misappropriation asset performance does not negate liability. It stands as an important precedent emphasizing accountability for the handling of customer assets in centralized trading venues.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.

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