Second Circuit Upholds Conviction of Sam Bankman-Fried Amid Appeals Process

The Second Circuit Court of Appeals has upheld the November 2023 conviction of Sam Bankman-Fried, denying his request for a retrial or a change of judge. This ruling comes after the court reviewed oral arguments presented in November 2025 and aligns with a broader trend of maintaining judicial integrity in high-profile fraud cases.

Bankman-Fried's appeal was largely one of his few remaining legal strategies following Judge Lewis Kaplan's April ruling that denied his motion for a new trial. During his appeal, Bankman-Fried asserted that his cryptocurrency exchange FTX was solvent, alleging that its failure was merely a consequence of a temporary liquidity crunch triggered by a surge in user withdrawals. His interpretation of “solvency” was notably unique and questioned.

Interestingly, some of FTX's prior investments, especially in the AI sector with investments like Anthropic, yielded significant returns after the collapse, enabling some restitution payments to affected customers. However, the Second Circuit was not swayed by this line of argument. The court referenced a pivotal Supreme Court decision from 2025, Kousisis v. United States, which clarified how fraud is determined: using material misstatements to induce another party into contract, even if no monetary losses were intended.

This precedent underlined that Bankman-Fried’s intent—or lack thereof—was irrelevant when it came to securing a conviction for fraud. Furthermore, the court maintained that Bankman-Fried had sufficient opportunities to present his side of the story during his trial. The appeals court remarked that his primary grievance seemed to be an inability to elaborate on his perspective during testimony, which the district court rightfully restrained to avoid jury confusion.

The court also dismissed his claims that the subsequent appreciation of his investments bore impact on the fraud charges, stating plainly: “Whether the assets purchased by Bankman-Fried appreciated in value is irrelevant as to whether he committed fraud.”

Moreover, the court tackled additional arguments presented by Bankman-Fried concerning the procedures followed during his trial. His belief that Judge Kaplan improperly required advance disclosure of his testimony was rejected, as the judge needed clarity on the allegations concerning legal advice from FTX's attorneys. The Second Circuit determined that Kaplan's approach was justified, especially when Bankman-Fried failed to fully disclose relevant details about his actions to these attorneys.

During pre-trial discussions, which Bankman-Fried termed a “deposition,” he often admitted to withholding information or having gaps in his memory, undermining his claims of needing to rely on legal counsel. The court was concerned that Bankman-Fried was attempting to construct a defense based on perceived legal counsel without meeting the necessary criteria for such a defense.

This ruling has left Bankman-Fried with limited options for recourse. He might still seek a review from the Supreme Court, although the likelihood of the Court agreeing to hear his case appears bleak. Currently, he is exploring the possibility of a presidential pardon from President Trump.

His application for a “pardon after completion of sentence” raises eyebrows; it wouldn’t change his status of being imprisoned for a decade or more but would restore certain civil rights post-sentence. While Trump has historically shown support for the crypto sector, which has benefitted him politically and financially, he has been hesitant about granting a pardon to Bankman-Fried. In contrast to other crypto figures who have received pardons, Bankman-Fried lacks substantial backing within the industry.

The absence of strong support for his pardon could be due to the ongoing resentment among crypto advocates regarding his actions that led to significant financial losses for many. Bankman-Fried's limited financial clout to contribute to Trump’s political maneuvers further complicates his push for clemency. Given these factors, his path to a pardon seems riddled with challenges.