The conviction of Sam Bankman-Fried, co-founder of the cryptocurrency exchange FTX, has been upheld by a federal appeals court. The court found the 2023 trial that resulted in his 25-year prison sentence was fair, dismissing claims of an unfair trial.
The 2nd U.S. Circuit Court of Appeals in Manhattan stated on Friday that the evidence presented by the government against Bankman-Fried was substantial. The jury concluded that he defrauded billions from customers and investors while running FTX, once the second-largest cryptocurrency exchange globally.
Evidence showed that Bankman-Fried reassured customers about the safety of their funds while secretly using FTX funds for personal ventures and altering business records to hide transactions. The appeals court highlighted how he misled customers, investors, and regulators while spending funds on real estate, political donations, and investments.
The defense argued that the trial was unfair due to restrictive rulings by the judge. However, the Circuit Court rejected this claim, with Judge Barrington D. Parker emphasizing the robust evidence against Bankman-Fried.
Bankman-Fried, aged 34, was convicted of fraud and conspiracy in 2023. FTX had previously gained significant attention through advertisements during events like the Super Bowl and endorsements from celebrities including Tom Brady, Stephen Curry, and Larry David. The company’s collapse in November 2022 resulted in over $11 billion in losses for customers, investors, and lenders.
During sentencing, Judge Lewis A. Kaplan criticized Bankman-Fried’s inconsistent testimony, which he described as evasive and misleading. While some recovery is possible for investors and customers, losses were substantial, with customers losing about $8 billion, investors $1.7 billion, and lenders $1.3 billion.
Efforts were made to contact Bankman-Fried’s lawyer for comments, but responses were not provided. The prosecutor’s office also declined to comment.
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