FTX Founder Sam Bankman-Fried Appeals $8 Billion Fraud Conviction, 25-Year Sentence

By Leira Aquino

Apr 11, 2024 10:48 PM EDT

Lawyers representing Sam Bankman-Fried, the founder of FTX and Alameda Research, have filed a notice of appeal following his recent $8 billion federal fraud and conspiracy conviction along with a 25-year prison sentence.

Bankman-Fried's appeal was anticipated after his sentencing in the US District Court in Manhattan, where he was also ordered to pay a staggering $11 billion in forfeiture. The appeal will be heard by the 2nd Circuit US Court of Appeals.

Sam Bankman-Fried Convicted of Massive Fraud

Bankman-Fried, 32, was convicted on seven counts of fraud and conspiracy, relating to misappropriating approximately $10 billion in customer funds.

Prosecutors described this case as one of the largest financial frauds in history. The appeal process is expected to be lengthy, with criminal defendants typically facing significant challenges in having their convictions overturned in federal court.

If the appeal at the 2nd Circuit is unsuccessful, Bankman-Fried's legal team would likely petition the US Supreme Court to review the case further.

However, such appeals are considered to be a long shot, with less than 10% of appeals resulting in reversals in federal court, according to CNBC.

Collapse of Sam Bankman-Fried's FTX

Bankman-Fried's legal troubles stem from the downfall of FTX, once a prominent cryptocurrency exchange worth billions of dollars.

The company faced liquidity issues and ultimately declared bankruptcy, leading to Bankman-Fried's arrest and subsequent legal battles.

During his sentencing, Bankman-Fried expressed regret and apologies. However, Judge Lewis Kaplan noted the lack of genuine remorse from Bankman-Fried.

Kaplan's imposed sentence was less severe than the 40- to 50-year term proposed by prosecutors. However, it was longer than the six-year term suggested by Bankman-Fried's legal team.

Bankman-Fried's appeal will now undergo judicial review.