Blab Crypto
Second Circuit Upholds Sam Bankman-Frieds 25-Year Fraud Sentence
On June 12, 2026, a three‑judge panel of the U.S. Court of Appeals for the Second Circuit delivered a unanimous verdict that upheld former FTX co‑founder Sam Bankman‑Fried’s 25‑year prison sentence and an $11 billion forfeiture order. The court rejected every argument that the 2023 trial had been unfair or that evidence‑ruling errors denied him a proper defense.
Spanning 42 pages, the appellate opinion described the government’s evidence as “robust” and reaffirmed that Bankman‑Fried was the chief architect of one of the largest frauds in U.S. history. The trial had found him guilty on seven counts of fraud, conspiracy, and money‑laundering linked to the collapse of the cryptocurrency exchange FTX. The court found no procedural errors that would justify a new trial.
Bankman‑Fried’s conviction traces back to the November 2022 implosion of FTX, then the third‑largest crypto exchange by trading volume. Investigations revealed that customer deposits were siphoned to Alameda Research, a sister firm, and used for high‑risk bets. The misappropriation of client funds triggered a bank‑run‑style withdrawal surge that the exchange could not meet, forcing its bankruptcy filing.
The Second Circuit’s ruling leaves the 25‑year sentence and forfeiture intact. Bankman‑Fried is currently serving his term at the Federal Correctional Institution in Otisville, New York. He has yet to announce whether he will pursue further appeals, including a possible petition to the U.S. Supreme Court. A presidential pardon request remains his only remaining legal avenue.
This decision marks the final major legal setback for Bankman‑Fried. While the case has already reshaped regulatory scrutiny of crypto exchanges, the appellate outcome confirms that the U.S. judiciary treats the misuse of customer funds in the cryptocurrency sector with the utmost severity.
At this juncture, the only unresolved questions are whether Bankman‑Fried will seek additional appeals and the status of his pardon request. No new evidence or procedural issues have emerged that could alter the current sentencing or forfeiture order.
Spanning 42 pages, the appellate opinion described the government’s evidence as “robust” and reaffirmed that Bankman‑Fried was the chief architect of one of the largest frauds in U.S. history. The trial had found him guilty on seven counts of fraud, conspiracy, and money‑laundering linked to the collapse of the cryptocurrency exchange FTX. The court found no procedural errors that would justify a new trial.
Bankman‑Fried’s conviction traces back to the November 2022 implosion of FTX, then the third‑largest crypto exchange by trading volume. Investigations revealed that customer deposits were siphoned to Alameda Research, a sister firm, and used for high‑risk bets. The misappropriation of client funds triggered a bank‑run‑style withdrawal surge that the exchange could not meet, forcing its bankruptcy filing.
The Second Circuit’s ruling leaves the 25‑year sentence and forfeiture intact. Bankman‑Fried is currently serving his term at the Federal Correctional Institution in Otisville, New York. He has yet to announce whether he will pursue further appeals, including a possible petition to the U.S. Supreme Court. A presidential pardon request remains his only remaining legal avenue.
This decision marks the final major legal setback for Bankman‑Fried. While the case has already reshaped regulatory scrutiny of crypto exchanges, the appellate outcome confirms that the U.S. judiciary treats the misuse of customer funds in the cryptocurrency sector with the utmost severity.
At this juncture, the only unresolved questions are whether Bankman‑Fried will seek additional appeals and the status of his pardon request. No new evidence or procedural issues have emerged that could alter the current sentencing or forfeiture order.
