Appeals Court Finalizes 25-Year Prison Term for Sam Bankman-Fried

The three-judge panel, consisting of Barrington Parker, Eunice Lee, and Maria Araújo Kahn, unanimously rejected the defense’s attempt to overturn the trial court’s ruling. Bankman-Fried’s legal team had argued that the potential for future asset recovery meant customers did not suffer permanent losses. However, the court maintained that the crime of wire fraud was complete the moment customer funds were diverted to Alameda Research without authorization, irrespective of any intent to repay.

This judicial decision draws a sharp line between criminal culpability and the ongoing bankruptcy proceedings. While FTX continues to distribute recovered assets to creditors—with nearly $900 million recently scheduled for payout—the court clarified that these repayments do not retroactively excuse the original misuse of capital. Bankman-Fried now faces limited options, restricted to a long-shot petition to the Supreme Court or a formal request for presidential clemency. Any path toward relief remains narrow, especially given that the U.S. Senate has already signaled strong bipartisan opposition to any potential pardon for the former executive.