Sam Bankman-Fried, the former CEO of FTX, faced a setback on Friday as a panel from the Second Circuit Court of Appeals dismissed his appeal to overturn his conviction on fraud and conspiracy charges linked to the collapse of his cryptocurrency trading firm.
The court concluded that Bankman-Fried’s claims of an unfair trial were unconvincing. The judges reviewed his arguments, which included assertions that he was not allowed to present all legal defenses and that he was restricted from demonstrating that FTX’s investments could have been profitable.
“Bankman-Fried makes these arguments in the face of a trial at which the government’s evidence against him was, conservatively stated, robust,” the ruling stated.
The panel upheld the decisions made by Judge Lewis Kaplan during the trial, stating he did not err in managing objections or in his rulings regarding the evidence presented by both sides.
The judges emphasized the considerable discretion district courts hold in trial management. They concurred with Kaplan’s handling of the case and addressed Bankman-Fried’s specific claims.
One of Bankman-Fried’s key arguments was that the misappropriated funds were tied to investments that would ultimately yield returns. However, the court found this reasoning legally misleading, asserting that the wire fraud statute covers temporary misappropriation of funds.
“Whether the assets purchased by Bankman-Fried appreciated in value is irrelevant as to whether he committed fraud,” the ruling added.
Bankman-Fried’s defense also contended that FTX operated as a margin futures trading platform, implying that customers should have anticipated potential limitations on their funds. The court dismissed this argument, stating that the nature of margin trading did not justify the misrepresentation of funds.
The ruling echoed the judges’ earlier skepticism during the hearing last November, where they frequently interrupted Bankman-Fried’s attorney, Alexandra Shapiro, with probing questions.
In a separate development, Bankman-Fried recently requested a pardon from U.S. President Donald Trump, although Trump has previously indicated he is not inclined to grant such clemency, unlike other crypto figures who have received pardons in recent months. Additionally, Bankman-Fried is pursuing a new trial in federal court, independent of this appeal.
The Second Circuit Court of Appeals has upheld Sam Bankman-Fried's conviction for fraud and conspiracy, rejecting his claims of an unfair trial. The ruling reinforces the strength of the prosecution's case and supports the trial judge's decisions.