A federal appeals court has affirmed Sam Bankman-Fried's conviction on fraud and conspiracy charges, rejecting the former FTX CEO's argument that investors could have been made whole. The mandate, issued by a three-judge panel of the US Court of Appeals for the Second Circuit, leaves the 2023 guilty verdict intact.
The appellate decision
The judges ruled that Bankman-Fried's claims about FTX's solvency did not erase the fact that he misled customers and misused their funds. The court found that the evidence at trial showed a pattern of deception, not a business that simply ran out of luck.
Judges reject 'no loss' narrative
Bankman-Fried had argued that because FTX's assets later recovered in value, investors suffered no actual loss. The three circuit judges disagreed, noting that the fraud was complete the moment he took customer money without authorization. The court said the potential for recovery does not undo the crime.
What the mandate means
The mandate formally closes the appeals process in the Second Circuit. Bankman-Fried's legal team could still petition the Supreme Court, but such requests are rarely granted. The conviction carries a potential sentence of decades in prison; a sentencing date has not yet been set.
