Sam Bankman-Fried has lost his bid to overturn his fraud conviction and 25-year prison sentence in connection with the collapse of FTX. A three-judge panel of the Second U.S. Circuit Court of Appeals declined to disturb the conviction, leaving in place one of the most significant criminal fraud judgments arising from the cryptocurrency sector.

Sam Bankman-Fried has lost his attempt to overturn his fraud conviction and 25-year prison sentence stemming from the collapse of the cryptocurrency exchange FTX.

The decision was issued by a three-judge panel of the Second U.S. Circuit Court of Appeals, marking another major setback for the former crypto executive. Bankman-Fried was convicted in 2023 by a federal jury in Manhattan on seven felony counts, including fraud and conspiracy charges.

FTX, once one of the most prominent cryptocurrency exchanges in the world, collapsed in 2022 after concerns emerged about its financial condition and its relationship with Alameda Research, Bankman-Fried’s crypto-focused hedge fund. The collapse triggered widespread losses and intensified scrutiny of the digital asset industry.

Prosecutors alleged that Bankman-Fried misused billions of dollars in FTX customer funds, describing the conduct as a massive fraud. At trial, former members of his inner circle testified that customer money was diverted to Alameda Research to cover losses and other obligations.

Bankman-Fried denied stealing customer funds. He admitted during trial that mistakes were made in running FTX, but maintained that he did not intentionally commit fraud. His appeal argued that the trial judge improperly restricted evidence that Bankman-Fried said would have supported his belief that FTX had sufficient assets to meet customer withdrawals.

The appeals court rejected the effort to overturn the conviction. As a result, the 25-year prison sentence imposed in March 2024 remains in place.

The case remains one of the most high-profile criminal fraud prosecutions connected to the cryptocurrency industry. It also underscores the risks that can arise when customer assets, trading operations, and internal corporate controls are not kept clearly separated.

Bankman-Fried is currently being held at a low-security federal prison in California. He is reportedly eligible for release in 2044.

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Originally published on Canadian Fraud News.