A federal appeals court has firmly rejected efforts by Sam Bankman-Fried, the disgraced founder and former chief executive officer of the collapsed cryptocurrency exchange platform FTX, to secure a new trial. The ruling, issued on June 12, 2026, by a three-judge panel of the US Court of Appeals for the Second Circuit in New York, upholds Bankman-Fried’s 2023 convictions on multiple fraud and conspiracy charges, along with his 25-year prison sentence.
The decision affirms that the original trial proceedings were fair and that the evidence presented against the onetime crypto billionaire was overwhelmingly strong.
Bankman-Fried had argued that restrictions imposed by the trial judge prevented him from fully presenting his defense, particularly claims that he intended to repay customers and that investments made with diverted funds could have ultimately succeeded.
The appeals court dismissed these contentions, emphasizing that the government’s case demonstrated a clear pattern of misusing customer deposits.
FTX, once valued at billions of dollars and hailed as a major innovator in digital asset trading, imploded dramatically in November 2022 amid revelations of widespread mismanagement.
Prosecutors alleged that Bankman-Fried and his associates diverted roughly $8 billion in customer funds from the exchange to his affiliated trading firm, Alameda Research.
These funds were used for purposes ranging from covering trading losses and making political donations to funding personal luxuries and real estate purchases.
The scheme left customers unable to withdraw their assets during a liquidity crisis, triggering the platform’s bankruptcy.
During the 2023 trial in Manhattan federal court before Judge Lewis A. Kaplan, testimony from former close associates—including Caroline Ellison, Gary Wang, and Nishad Singh—painted a detailed picture of the fraud.
Cooperating witnesses described how Bankman-Fried directed the commingling of funds, falsification of records, and other deceptive practices while publicly assuring investors and users that their money was safe and segregated.
The jury deliberated briefly before convicting him on all seven counts, including wire fraud, securities fraud conspiracy, commodities fraud conspiracy, and money laundering conspiracy.
On appeal, Bankman-Fried’s legal team challenged various evidentiary rulings, jury instructions, and claims of judicial bias.
They contended that the defense was unfairly limited in arguing about the temporary nature of any shortfalls or Bankman-Fried’s reliance on legal advice.
The Second Circuit panel, in a unanimous opinion written by Circuit Judge Barrington D. Parker, rejected these arguments.
The court noted that even temporary misappropriation of customer funds constitutes fraud under federal law, regardless of any later intent or ability to repay.
It described the prosecution’s evidence as “robust” and found no basis to overturn the verdict or order a new proceeding.
The ruling also upholds the substantial $11 billion forfeiture order imposed alongside the prison term.
While bankruptcy proceedings have allowed for significant recoveries— with many customers receiving repayments often exceeding 100% of their claims through asset liquidations—the appeals court focused on the criminal liability established at trial.
This outcome narrows Bankman-Fried’s remaining legal options, which could include further appeals to the full Second Circuit or the U.S. Supreme Court. The decision underscores the accountability applied in some of these so-called white-collar crypto cases and seemingly provides closure for many affected by FTX’s downfall.