Bankman-Fried Appeal Denied: Conviction Upheld for FTX Collapse

A federal appeals court in New York has denied Sam Bankman-Fried's appeal of his conviction on fraud and conspiracy charges related to the collapse of his crypto exchange, FTX.

Bankman-Fried was sentenced to 25 years in prison in 2024 for orchestrating one of the biggest financial frauds in American history, according to prosecutors. The appeals court upheld his conviction in June, finding that he was the 'driving force' behind a scheme that misappropriated billions of dollars from customers and investors.

Bankman-Fried had argued on appeal that the trial judge wrongly precluded him from introducing evidence that, despite his many unauthorized transactions, his investments were sound and would ultimately make investors whole. However, the appellate court cited a US Supreme Court ruling that fraud occurs when a defendant uses a material misstatement to trick a victim into forking over money, regardless of intent to cause economic loss.