Second Circuit closes SBF appeal, leaving 25-year FTX fraud sentence in place

The Second Circuit Court of Appeals issued a mandate on Aug. 4, 2026 affirming Sam Bankman-Fried's conviction on seven fraud and conspiracy counts tied to the collapse of FTX and leaving his 25-year prison sentence in place. The ruling closes the appeal his lawyers filed in September 2024, which argued that trial rulings and jury instructions denied him a fair hearing, and returns the case to the district court in a settled posture. A Manhattan jury convicted Bankman-Fried in November 2023 over the November 2022 failure of FTX, once one of the world's largest crypto exchanges. Prosecutors showed that customer funds deposited on FTX were diverted to Alameda Research, the affiliated trading firm, and used to cover losses, make venture investments, and fund political donations and real estate. When customers sought withdrawals during a run on the exchange, the funds were not available. Court filings and the bankruptcy estate had put the shortfall owed to FTX customers and creditors at roughly $8 billion at the time of the collapse. The sentencing judge cited the scale of the losses and Bankman-Fried's testimony in imposing the prison term. Remaining options, including a rehearing by the full Second Circuit or a petition to the U.S. Supreme Court, are possible but rarely granted.