With 19 years remaining in his 25-year sentence, former FTX CEO Sam “SBF” Bankman-Fried is seeking a fresh chance to challenge his conviction. His lawyers are set to present arguments before the US Court of Appeals for the Second Circuit, claiming that key evidence about FTX’s solvency was wrongly excluded from his original trial.
The appeal hearing, will determine whether the disgraced crypto executive can secure a new trial or whether the lower court’s conviction will stand. In a filing from September 2024, SBF’s legal team argued that prosecutors and FTX’s new management created a “false narrative” portraying the exchange as bankrupt when it allegedly still had billions in assets.
From day one, the prevailing narrative initially spun by the lawyers who took over FTX was that Bankman-Fried had stolen billions of dollars of customer funds, the appeal stated. Now, nearly two years later, a very different picture is emerging one confirming FTX was never insolvent, and in fact had assets worth billions to repay its customers.
Background and legal context
Following FTX’s collapse in November 2022, Bankman-Fried was extradited from the Bahamas to the United States to face multiple charges, including wire fraud and money laundering. A New York jury convicted him on seven felony counts in November 2023, and he was sentenced to 25 years in federal prison in March 2024.
The case remains one of the most high-profile criminal trials in crypto history, drawing scrutiny from lawmakers and regulators due to SBF’s extensive political donations and influence across Washington. The Second Circuit panel now faces the task of deciding whether any trial errors warrant overturning the conviction or adjusting the sentence.
Speculation of a presidential pardon
Meanwhile, Bankman-Fried has reportedly shifted his political alignment, expressing support for former President Donald Trump amid speculation that he could seek a pardon.
Trump has previously granted clemency to high-profile crypto figures, including Silk Road founder Ross Ulbricht and former Binance CEO Changpeng “CZ” Zhao, fueling speculation that SBF might be next in line. However, as of Tuesday, the White House has not announced any move to pardon or commute his sentence.