Updated: 2026-08-06
The United States Second Circuit Court of Appeals has issued an official ruling upholding the conviction and sentencing of former FTX CEO Sam Bankman-Fried. This reduces the avenues available for his early release from prison.
It is known that three circuit judges, in the appellate petitions, refuted Bankman-Fried's claims that FTX had "sufficient liquidity to guarantee investors reimbursement and an absence of any losses." They also upheld the New York court's decision to forfeit $11 billion in assets as part of the criminal case.
As the district court recognized, any suggestion that Bankman-Fried lacked intent to defraud customers because he intended to repay them was legally misleading and biased, as the wire fraud statute extends to the temporary unlawful taking of money or property.
As the district court made clear, FTX’s customers were defrauded as soon as Bankman-Fried transferred their money to Alameda, regardless of how strongly he believed he could return the money later, — stated Circuit Judge Barrington D. Parker.
Bankman-Fried now has few remaining legal paths to achieve early release from prison, including through a pardon from Donald Trump or an appeal to the Supreme Court. Earlier, Happy Coin News reported that the U.S. President does not plan to grant early release to the exchange founder.
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