Convicted cryptocurrency executive Sam Bankman-Fried suffered another major legal setback this week after a federal appeals court rejected his effort to overturn the conviction that sent him to prison for one of the most significant financial fraud cases in recent memory.
The ruling came from the Manhattan-based 2nd U.S. Circuit Court of Appeals, which denied the former FTX chief executive’s claim that his 2023 criminal trial was fundamentally unfair.
In a decision that dealt a serious blow to Bankman-Fried’s hopes of reversing his conviction, Judge Barrington Parker wrote that the evidence presented by federal prosecutors was overwhelmingly strong.
“The government’s evidence against him was, conservatively stated, robust,” Parker wrote in the court’s opinion.
The decision leaves intact Bankman-Fried’s conviction and the 25-year prison sentence he is currently serving.
Federal prosecutors accused Bankman-Fried of orchestrating a massive scheme involving the misuse of customer funds connected to his cryptocurrency empire. According to the Department of Justice, the former executive misappropriated billions of dollars deposited by customers of FTX, the cryptocurrency exchange he founded.
The government also alleged that Bankman-Fried defrauded FTX investors out of more than $1.7 billion and defrauded lenders to Alameda Research, his affiliated trading firm, out of more than $1.3 billion.
The collapse of FTX sent shockwaves throughout the cryptocurrency industry and became one of the most closely watched financial scandals in the country.
Prosecutors have described the case as “one of the largest financial frauds in American history,” a characterization that helped shape public understanding of the dramatic downfall of a businessman who was once viewed as one of the most influential figures in digital finance.
The appellate ruling arrives only days after Bankman-Fried made a direct appeal for presidential clemency.
According to reports, the former executive recently sought a full pardon from President Donald Trump in an effort to escape the lengthy prison sentence imposed after his conviction on fraud, conspiracy, and money laundering charges.
The request comes despite comments Trump reportedly made earlier this year suggesting he had no plans to grant such relief.
In January, Trump told The New York Times that he did not intend to pardon Bankman-Fried. Nevertheless, efforts on the former executive’s behalf have continued.
According to the Times, Bankman-Fried’s supporters and family members have actively worked to build support for a pardon request. The newspaper reported that those efforts included outreach to individuals with connections in Washington and collaboration with an attorney who has ties to the president.
The report also noted that Bankman-Fried’s father has publicly praised some of Trump’s policies. In addition, Bankman-Fried participated in a jailhouse interview with Tucker Carlson last year.
Meanwhile, Politico reported that Bankman-Fried has spent months posting favorable comments about Trump on social media.
Despite those efforts, the former cryptocurrency executive remains a controversial figure in Washington.
Politico reported that many lawmakers continue to view him negatively, including Republicans involved in ongoing debates over cryptocurrency regulation. Those lawmakers are now grappling with issues that FTX and Bankman-Fried once sought to shape while the company was among the industry’s most powerful players.
The court’s decision reinforces the legal consequences stemming from the collapse of FTX and further narrows Bankman-Fried’s remaining options. For now, his conviction stands, his sentence remains in place, and his efforts to secure relief through the courts have suffered another significant defeat.
[READ MORE: Tucker Carlson Accuses Trump of Halting Butler Investigation as Dan Bongino Fires Back]
