Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has had his conviction upheld by the federal appeals court. The court affirmed the verdict of his 2023 trial, which led to a 25-year prison sentence. This decision came from the 2nd U.S. Circuit Court of Appeals in Manhattan.
The court concluded that the government’s evidence against Bankman-Fried was strong and clearly demonstrated the charges against him. The 34-year-old was found guilty of defrauding FTX customers and investors, exploiting the company for personal gain while misleading the public about the security of their funds. According to the court, Bankman-Fried reassured stakeholders about the safety of their investments while misusing funds on real estate, political support, and other ventures.
During his case, Bankman-Fried’s defense argued that trial limitations on evidence rendered it unfair. However, the appeals panel disagreed and upheld the original ruling. The court, chaired by Judge Barrington D. Parker, dismissed the defense’s claims.
Bankman-Fried’s rise in the cryptocurrency world was swift, boasting endorsements from sports and entertainment figures such as Tom Brady, Stephen Curry, and Larry David. FTX used to be a significant player in the market, even advertising during major events like the Super Bowl. However, the company’s downfall in November 2022 resulted in substantial financial losses for customers, investors, and lenders. In total, losses amounted to over $11 billion.
During sentencing, Judge Lewis A. Kaplan highlighted inconsistencies in Bankman-Fried’s court testimony, accusing him of perjury and evasive behavior. The judge noted specific losses, including $8 billion from customers and $1.7 billion from investors.
Both Bankman-Fried’s legal team and prosecutors have refrained from commenting on the recent decision.