NEW YORK — A federal appeals court has confirmed the fraud conviction of digital currency executive Sam Bankman-Fried, ruling that his 2023 trial resulting in a 25-year prison term was conducted fairly.
On Friday, the 2nd U.S. Circuit Court of Appeals in Manhattan determined that prosecutors presented “conservatively stated, robust” evidence against the former prominent figure in the digital currency sector.
Jurors determined that Bankman-Fried swindled customers and investors out of billions while running FTX, previously the world’s second-biggest cryptocurrency trading platform.
The appellate court concluded that evidence demonstrated Bankman-Fried provided false assurances to FTX users while simultaneously moving billions for personal purposes and creating fraudulent business documents to hide these transfers.
“While he was publicly reassuring customers, investors, and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments,” the appeals court wrote.
The 2nd Circuit, which conducted oral arguments in November 2025, dismissed defense claims that the trial was unjust due to judicial rulings that restricted evidence presentation. Judge Barrington D. Parker authored the three-judge panel’s decision.
The 34-year-old Bankman-Fried was found guilty of fraud and conspiracy in 2023 following a rapid ascent and spectacular downfall in the cryptocurrency world, where his business once ran Super Bowl advertisements. Bankman-Fried appeared before Congress and received endorsements from celebrities including quarterback Tom Brady, basketball point guard Stephen Curry and comedian Larry David.
FTX failed in November 2022, creating losses exceeding $11 billion for customers, investors and lenders.
During Bankman-Fried’s sentencing hearing, Judge Lewis A. Kaplan condemned the businessman’s courtroom testimony, stating he repeatedly lied under oath with responses that were “often evasive, hair-splitting, dodging questions.”
Kaplan further stated that Bankman-Fried deserved no leniency despite potential partial recovery for some investors and customers. He specified that customers suffered approximately $8 billion in losses, investors lost $1.7 billion and lenders faced $1.3 billion in shortfalls.
Bankman-Fried’s attorney was contacted for response. A prosecutor’s spokesperson refused to comment.
