US appellate court mandate affirms Sam Bankman-Fried conviction
Three circuit judges disputed the former FTX CEO’s claims that the defunct crypto exchange’s investors could have been made whole and wouldn’t have experienced any losses.
A US appellate court has confirmed the conviction and 25-year prison sentence of former FTX CEO Sam Bankman-Fried, dismissing his arguments that the defunct crypto exchange's investors would have been made whole and not experienced losses. The US Court of Appeals for the Second Circuit issued the mandate on Tuesday, following its June 12 ruling that upheld a lower court's decision to convict the former CEO on seven felony counts.
The appellate judges disputed Bankman-Fried's claims that FTX had sufficient liquidity to ensure investors were made whole and would not suffer any financial losses. They emphasized that any argument suggesting Bankman-Fried lacked intent to defraud due to his intention to eventually repay customers was legally misleading and prejudicial, as the wire fraud statute covers temporary misappropriation of money or property.
The court stated that FTX customers were defrauded the moment Bankman-Fried transferred their funds to Alameda, regardless of his belief that he might later return the money.
With this official appellate mandate, Bankman-Fried has limited legal avenues for seeking an early release from prison. These limited options include a potential presidential pardon from US President Donald Trump or an appeal to the Supreme Court. However, President Trump has stated in January that he has no plans to issue a pardon, and the US Senate unanimously passed a resolution opposing clemency for the FTX CEO last month.
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