FTX, the Court of Appeals upholds Sam Bankman-Fried's conviction: 25 years in prison remain

The federal Court of Appeals of the United States has rejected the appeal filed by Sam Bankman-Fried, upholding the conviction for fraud and the 25-year prison sentence related to the collapse of FTX, the cryptocurrency exchange platform that collapsed in 2022, leaving a multi-billion dollar void.

The decision was made by a panel of three judges from the Second Circuit Court of Appeals based in New York, who deemed the conclusions reached during the trial held in Manhattan to be valid. Bankman-Fried, once among the most influential figures in the cryptocurrency industry and considered a symbol of the sector's growth, was found guilty in 2023 on seven counts, including fraud and conspiracy.

According to the prosecution, the founder of FTX orchestrated a scheme leading to the improper use of approximately $8 billion belonging to the exchange's customers. Prosecutors argued that part of the customers' funds had been used to cover the losses of Alameda Research, a hedge fund specializing in cryptocurrencies and closely tied to FTX.

In the appeal, the defense challenged several procedural decisions made during the trial by Judge Lewis Kaplan. In particular, Bankman-Fried's lawyers claimed that the defense had been prevented from presenting evidence useful to demonstrate the former CEO's belief that FTX had sufficient liquidity to meet customer withdrawal requests.

However, the Court of Appeals rejected these arguments. In the text of the decision, Judge Barrington Parker highlighted how the evidence presented by the prosecution was particularly solid, emphasizing that the evidence against the defendant was overwhelmingly supported by testimonies and documentation collected during the investigations.

A central role in the proceedings was played by the statements of three former associates of Bankman-Fried. The executives, who had previously admitted their own responsibilities and agreed to cooperate with investigators, stated that the FTX founder authorized the transfer of customer funds to support the activities of Alameda Research.

Thus, the ruling completely upholds the verdict issued by the federal jury and the sentence established in March 2024. At that time, Judge Kaplan stated that Bankman-Fried was aware of the illegality of his actions, claiming he simply underestimated the possibility of being discovered.

The former executive is currently serving his sentence in a low-security federal penitentiary near Santa Barbara, California. According to current estimates, he could be released in 2044.

However, the legal saga is not yet over. In addition to the possibility of appealing to higher courts, including the U.S. Supreme Court, Bankman-Fried is seeking a new trial, arguing that any new testimony could alter the accusatory framework. Meanwhile, a request for presidential clemency submitted to the U.S. administration remains pending.