Sam Bankman-Fried Appeals FTX Fraud Conviction, Cites Excluded Evidence
Convicted FTX Founder Returns to Court
Defense Challenges and Expert Views
Among the key issues raised is whether the trial judge wrongly restricted testimony supporting Bankman-Fried’s claim that he acted on the advice of counsel. His lawyers have argued that he believed his actions were lawful because they were reviewed by company attorneys, an argument Judge Kaplan limited at trial.
Samson Enzer, a partner at Cahill Gordon & Reindel and former federal prosecutor, said the appeal hinges on that evidentiary dispute. “Of the arguments raised by SBF, the most interesting to me is whether the trial court erred in limiting the evidence in support of his alleged ‘presence of counsel’ defense, and whether any such error was harmless or would warrant a re-trial,” Enzer told The Block. He called the defense’s path “a steep uphill battle.”
Howard Fischer, a partner at Moses & Singer and former senior trial counsel at the SEC, said appellate courts rarely overturn jury verdicts unless procedural missteps are severe. “Unless there are multiple errors which, taken together, deprive the defendant of a fair trial, they will strain to uphold the behavior of the trial judge,” Fischer said in an email statement.
Fischer added that the tone of the hearing could hint at the outcome. “If questions are sparse and the judges only ask pro forma questions, the original decision will likely be upheld,” he said. “The attitude of the panel will also be an indication — do they treat the issues raised by Bankman-Fried seriously, or do they indicate by their tone that they do not?”
Investor Takeaway
Political and Personal Dimensions
Bankman-Fried’s parents, Stanford Law professors , are said to be pressing for a presidential pardon should the appeal fail. Fischer said that, if the court affirms the conviction, the family is expected to intensify lobbying efforts for clemency.
The odds appear slim. Bankman-Fried was among the largest donors to President Biden’s 2020 campaign, contributing roughly $5.2 million to efforts to defeat then-President Donald Trump. With Trump back in office and reportedly considering pardons for other crypto executives — including former — observers say a pardon for Bankman-Fried is unlikely.
Bankman-Fried Defends His Record
Ahead of Tuesday’s hearing, Bankman-Fried posted a 15-page document on X (formerly Twitter), claiming that FTX and Alameda Research “were never insolvent” and that all customers could have been repaid following the 2022 liquidity crisis. The statement appeared to reassert his defense narrative that mismanagement, not fraud, caused the platform’s collapse.
FTX’s bankruptcy estate has since recovered billions in customer funds through asset sales, though victims continue to await final compensation rulings. The appeal represents Bankman-Fried’s last major chance to reverse a conviction that has become a defining case in crypto’s regulatory reckoning.
Investor Takeaway
What Comes Next
The Second Circuit is expected to issue its ruling in the coming months. If the panel affirms the conviction, Bankman-Fried could petition the U.S. Supreme Court, though such reviews are rare. For now, legal observers say the case serves as a cautionary tale for crypto executives navigating compliance in an industry still reeling from FTX’s collapse.
