Appeals court rejects Sam Bankman-Fried's bid for new trial in FTX fraud case
Former FTX CEO Sam Bankman-Fried lost his appeal to overturn his 25-year sentence after accusing the original court of not giving him a fair chance.
On Friday, the U.S. Court of Appeals for the Second Circuit sided with an earlier district court's decision, which found the former executive guilty of seven counts of fraud and conspiracy.
Sam Bankman-Fried was convicted in November 2023 by a New York jury on all seven counts related to defrauding FTX customers, lenders, and investors. Prosecutors described the scheme as likely the largest financial fraud of the past decade, drawing comparisons to the Ponzi scheme orchestrated by Bernie Madoff.
Bankman-Fried founded both FTX and the hedge fund Alameda Research, which played a central role in the fraud. He was subsequently sentenced to 25 years in prison.
Bankman-Fried filed an appeal requesting a new trial in September 2024. At the time, a lawyer representing the former executive criticized New York Judge Lewis Kaplan's handling of the case and said Bankman-Fried should not have been blocked from introducing certain evidence.
In the order on Friday, a trio of judges disagreed with Bankman-Fried's arguments that customer investments were sound and that liquidity was there to make customers whole as well as his criticism of the court for not being allowed to bring evidence.
"The overwhelming evidence presented at trial proved that Bankman-Fried knowingly and intentionally committed large-scale fraud on FTX’s customers," the appeals court said. "While he was publicly reassuring customers, investors, and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments."
In late April, a federal judge rejected Sam Bankman-Fried's bid for a new trial, calling key claims in his motion "wildly conspiratorial."
Bankman-Fried has also sought a pardon from President Donald Trump, though the president has said he has no plans to do so.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Morgan Stanley: The expansion value of BHP South Australia copper mine is still underestimated, on-site inspection may become a catalyst for revaluation, “Overweight” rating maintained.
Morgan Stanley released a research report, maintaining an "Overweight" rating on BHP Group Limited (Australian shares) and a target price of 68 AUD.
Deutsche Bank remains bullish on Palo Alto Networks (PANW.US) ahead of earnings: Q1 results expected to be solid, platform advantages will help expand market share.
Deutsche Bank's latest research report predicts that Palo Alto Networks will deliver solid performance in the first quarter, with all key metrics exceeding market expectations, although the margin of outperformance may narrow compared to the previous quarter.
On the eve of Anthropic (ANT.US) IPO: $19 billion in passive buying on the way, will “SpaceX-style” index arbitrage be repeated?
From SpaceX to Anthropic: Giant new listings adopt a new approach.
Amidst extramarital affair scandal and Nvidia’s stock plummet, “The Big Short”: Short-term may be an “excellent trade,” but long-term remains bearish
Burry admitted that if he did not already hold a short position, the sharp drop caused by the scandal might be a good contrarian buying opportunity—but he himself made it clear he would not participate. The fatal risk lies in the possibility that this turmoil could trigger regulatory investigations into its "mafia-style" business practices and export controls. Combined with the risks of over-investment in AI, its competitive advantage is expected to quickly narrow, so he remains firm in his short position.
Crypto prices
More
