FTX Founder Sam Bankman-Fried Loses Appeal Against Fraud Conviction

A US appeals court has rejected Sam Bankman-Fried's challenge to his fraud conviction and 25-year prison sentence, ruling that the fraud occurred when customer funds were diverted to Alameda Research.

FTX Founder Sam Bankman-Fried Loses Appeal Against Fraud Conviction

A panel of three appellate judges has turned down Sam Bankman-Fried's effort to overturn his fraud conviction. The former cryptocurrency entrepreneur is currently serving a 25-year prison term in the United States.

The appeals court ruled that the trial judge had not erred in preventing defense attorneys from telling jurors that FTX could have repaid investors despite its insolvency. Bankman-Fried's legal team had argued this restriction was grounds for reversal. The appellate panel found the point moot, however, because the fraudulent act took place when customer assets were transferred to Alameda Research, his hedge fund.

FTX, once among the largest platforms for trading digital currencies such as Bitcoin, collapsed dramatically in late 2022. Authorities in the Bahamas arrested Bankman-Fried and extradited him to face charges in the United States. A jury convicted him in 2024.

Prosecutors proved that Bankman-Fried embezzled customer deposits while running Alameda Research, which engaged in risky trades. Although FTX's systems should have required collateral for loans, a hidden software exception allowed Alameda to borrow without limits. When those trades soured, prosecutors said, an enormous shortfall opened in FTX's accounts. Bankman-Fried maintains that the exchange faced a liquidity crisis but remained fundamentally solvent.

The 34-year-old has also sought a presidential pardon. Records from the US Department of Justice indicate he would only want clemency after completing his sentence, which under American law could restore rights such as voting. In an interview with the New York Times earlier this year, President Donald Trump said he did not plan to pardon Bankman-Fried.

Bankman-Fried may still request a review by the full appeals court or petition the Supreme Court of the United States.

Source: 20 Minuten

Source: 20 Minuten