Sam Bankman-Fried loses appeal to drop fraud charges and jail time | Crypto News

If the former crypto billionaire loses all remaining options, he may be released in 2044.

Former crypto tycoon Sam Bankman-Fried has lost his He sought a commutation of his conviction for fraud and 25 years in prison on the fall of the FTX cryptocurrency exchange he launched.

In a unanimous decision Friday, three judges of the United States Supreme Court of Appeals for the Second District of Manhattan said the testimony of the Bankman-Fried plaintiffs was “substantial.”

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“While he was publicly assuring customers, investors and regulators that FTX’s customer funds were safe, at the same time he was using FTX as his piggy bank, using customer money for real estate, political donations, and businesses,” said Circuit Judge Barrington Parker on behalf of the group.

Attorneys for Bankman-Fried did not immediately respond to a request for comment. They can then ask all the judges on the 2nd Circuit to hear the case, or ask the US Supreme Court to hear the case.

Bankman-Fried is also seeking a pardon from US President Donald Trump, according to the Office of Justice’s Pardon Attorney. Neither the White House nor the Justice Department immediately responded to a request for comment.

Although it is unclear whether this will happen, Trump, last year, pardoned a crypto tycoon, Changpeng ZhaoThe founder of the giant Binance cryptocurrency exchange, who was accused of violating US currency fraud laws.

‘A lot of deception’

Bankman-Fried, who was one of the most influential figures in the cryptocurrency community and a multi-billionaire before FTX’s dramatic collapse in 2022, was found guilty of seven counts in a Manhattan jury in 2023.

Prosecutors from the Manhattan US Attorney’s Office alleged that he stole $8bn from FTX clients to offset losses at his crypto-focused hedge fund, Alameda Research, which they called “a massive fraud”.

Bankman-Fried pleaded not guilty to two counts of fraud and five counts of conspiracy. At his trial, he admitted to wrongdoing in running FTX, but testified that he had never stolen money.

In an appeal of the case, Bankman-Fried’s defense attorneys argued that US District Judge Lewis Kaplan, who is presiding over the case, improperly prevented Bankman-Fried from testifying about his belief that FTX had sufficient funds to pay customers.

The appeals court disagreed, stating that fraud occurs when a defendant tricks someone into giving money or property, even if the defendant wants to ultimately get away with it.

“FTX customers were defrauded as soon as they transferred their money to Alameda regardless of their belief that they would get the money back,” Parker said.

Due to be released in 2044

Before the collapse of FTX, Bankman-Fried was a prominent figure in the crypto industry who tarnished his reputation with charitable and political donations.

On March 2024 to give punishment after hearing it, Kaplan said Bankman-Fried knew what she had done was wrong but “made a very bad bet that she would get caught”.

Three former Bankman-Fried executives pleaded guilty to their involvement in the case and testified against their former boss at his trial.

Bankman-Fried is being held at a low-security prison near Santa Barbara, California. He should be released in 2044.