The Second Circuit rejected claims that FTX had enough liquidity to prevent investor losses and left intact a $11 billion forfeiture order tied to the criminal case in New York.
Sam "SBF" Bankman-Fried's conviction on seven felony counts and 25-year federal prison sentence will stand after the U.S. Court of Appeals for the Second Circuit issued a formal order affirming the lower court's ruling. A three-judge panel rejected his argument that FTX had sufficient liquidity (readily available funds) and that investors could have been repaid in full without losses, while also preserving the $11 billion forfeiture order entered by the New York court. Circuit Judge Barrington D. Parker said Bankman-Fried's belief that he would eventually repay customers does not prevent wire fraud law from applying to the temporary misappropriation of funds or property. With the order now in effect, his options for securing an earlier release have narrowed, including seeking a presidential pardon or appealing to the Supreme Court.