A federal appeals court has upheld the fraud conviction of FTX co-founder Sam Bankman-Fried, dealing a significant blow to his efforts to overturn the guilty verdict. The decision, released on June 12, 2026, by the Second Circuit Court of Appeals in New York, rejected Bankman-Fried's arguments that the trial was unfair and that the judge made errors in instructing the jury.
Background of the Case
Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy related to the collapse of FTX, once one of the world's largest cryptocurrency exchanges. Prosecutors argued that he orchestrated a massive scheme to misappropriate customer funds to cover losses at his hedge fund, Alameda Research. He was sentenced to 25 years in prison in March 2024.
Appeal Arguments
In his appeal, Bankman-Fried's legal team contended that the trial judge, Lewis Kaplan, had prejudiced the jury by allowing testimony about the extravagant lifestyle of FTX executives and by limiting the defense's ability to present evidence about the role of other FTX employees. They also argued that the judge's instructions on the fraud charges were flawed.
The appeals court, however, found no merit in these claims. In a unanimous opinion, the three-judge panel stated that the evidence against Bankman-Fried was overwhelming and that the trial was conducted fairly. The court noted that the jury had been properly instructed and that the contested testimony was relevant to establishing Bankman-Fried's intent to defraud.
Reactions
Damian Williams, the U.S. Attorney for the Southern District of New York, praised the ruling, saying it "affirms that justice was served in this landmark case." He added that the decision sends a clear message that financial fraud will not be tolerated.
Bankman-Fried's attorney, Mark Cohen, expressed disappointment and indicated that they would consider further legal options, including a potential petition to the Supreme Court. "We believe the trial was flawed, and we will continue to fight for Sam's rights," Cohen said in a statement.
Impact on the Crypto Industry
The conviction and its affirmation have been seen as a turning point for cryptocurrency regulation. The case highlighted the lack of oversight in the crypto sector and spurred calls for stricter rules. Since the FTX collapse, regulators have intensified scrutiny of digital asset exchanges, leading to increased compliance requirements and a wave of enforcement actions.
The appeals court's decision also resolves one of the most high-profile white-collar crime cases in recent years. Bankman-Fried remains incarcerated at the Metropolitan Detention Center in Brooklyn, New York, pending any further appeals.
