A federal appeals court has formally affirmed Sam Bankman‑Fried’s criminal conviction, his 25‑year prison term and an roughly $11 billion forfeiture order, closing a major chapter in the legal fallout from FTX’s collapse. What changed - On Aug. 4 the U.S. Court of Appeals for the Second Circuit filed its mandate, making its June 12 judgment final and returning jurisdiction to the Southern District of New York. The mandate simply puts the earlier appellate decision into effect — it does not add new legal reasoning. What the court affirmed - A jury convicted Bankman‑Fried in November 2023 on seven counts of fraud and conspiracy tied to the implosion of FTX and Alameda Research. - In March 2024 U.S. District Judge Lewis Kaplan sentenced him to 25 years in prison and ordered forfeiture of about $11 billion. - A three‑judge panel — Judges Barrington Parker, Eunice Lee and Maria Araújo Kahn — unanimously found no reversible error in the trial court’s evidentiary rulings or jury instructions and rejected Bankman‑Fried’s efforts to overturn the conviction and sentence. Why the appeals court rejected the defense - Bankman‑Fried’s defense argued the trial should have allowed evidence that FTX still held assets that could make customers whole, maintaining the exchange had value and losses might not be permanent. - The Second Circuit disagreed, holding that wire fraud occurred the moment customer funds were moved to Alameda without authorization. As Judge Parker wrote, “FTX customers were defrauded as soon as Bankman‑Fried transferred their money to Alameda regardless of how strongly he believed he might later return the money.” - The panel also ruled that later appreciation of FTX‑related investments did not negate the criminal nature of the initial unauthorized transfers. Prosecutors had shown those customer funds financed investments, political donations and real estate purchases while Bankman‑Fried publicly said deposits were safe. Criminal verdict vs. bankruptcy recoveries - The appeals decision separates Bankman‑Fried’s criminal liability from ongoing bankruptcy recovery efforts. FTX’s Chapter 11 process continues to return assets to creditors even as the criminal case stands. - FTX scheduled a fifth creditor distribution for July 31, with nearly $900 million expected to be paid to approved Convenience and Non‑Convenience Class claimants. Eligible creditors had to meet pre‑distribution requirements by a June 16 record date; payment vendors include Kraken, Payoneer and BitGo. - Those distributions stem from the reorganization plan and do not erase or excuse the criminal findings against Bankman‑Fried. What’s next for Bankman‑Fried - He can still petition the U.S. Supreme Court for review, but the high court accepts only a small fraction of petitions and filing one would not automatically halt his sentence or undo the appellate mandate. - Presidential clemency remains another possible route. Bankman‑Fried has publicly sought a pardon, but President Trump said in January he was not considering one. In July the U.S. Senate unanimously passed a nonbinding resolution opposing any pardon, commutation or other clemency for the former FTX CEO — a symbolic rebuke that does not strip the president of constitutional pardon power but signals bipartisan resistance. Bottom line: The Second Circuit’s mandate cements the criminal judgment against Bankman‑Fried while allowing the parallel bankruptcy process to proceed — meaning creditors may still recover through FTX’s Chapter 11 even as SBF begins serving his sentence. Read more AI-generated news on: undefined/news