Judges Cite ‘robust’ Evidence Against Sam Bankman-fried As His Appeal Collapses While He Waits For Trump Pardon

Sam Bankman-Fried, nan laminitis of nan collapsed FTX cryptocurrency exchange, saw his bid to overturn his fraud condemnation and 25-year situation condemnation rejected connected Friday.

A three-judge sheet of nan Manhattan-based 2nd U.S. Circuit Court of Appeals unanimously affirmed nan little court's decision, stating that nan prosecution's grounds against Bankman-Fried "was, conservatively stated, robust."

Circuit Judge Barrington Parker, penning connected behalf of nan panel, highlighted Bankman-Fried's deceptive practices.

"While he was publically reassuring customers, investors and regulators that FTX customer costs were safe, he was simultaneously utilizing FTX arsenic his ain individual piggy bank, spending customer costs connected existent estate, governmental contributions, and investments," Parker wrote.

Bankman-Fried's ineligible squad has not yet commented connected nan ruling but whitethorn prosecute further appeals to nan afloat 2nd Circuit aliases nan U.S. Supreme Court.

Separately, Bankman-Fried is seeking a pardon from President Donald Trump, according to records from nan Justice Department's Office of nan Pardon Attorney.

Neither nan White House nor nan Justice Department instantly responded to requests for remark regarding this application.

Bankman-Fried, erstwhile a salient fig successful nan cryptocurrency assemblage and a multibillionaire, was recovered blameworthy connected 7 felony charges by a national assemblage successful Manhattan successful 2023 pursuing FTX's spectacular illness successful 2022.

Prosecutors from nan Manhattan U.S. Attorney's Office accused him of stealing $8 cardinal from FTX customers to screen losses astatine his crypto-focused hedge fund, Alameda Research, labeling it a "fraud of epic proportions."

Despite pleading not blameworthy to nan 2 counts of fraud and 5 counts of conspiracy, Bankman-Fried admitted to operational mistakes astatine FTX during his proceedings but maintained he ne'er stole funds.

His defense lawyers based on connected entreaty that U.S. District Judge Lewis Kaplan, who presided complete nan trial, improperly prevented Bankman-Fried from presenting grounds suggesting FTX possessed capable costs to screen customer withdrawals.

The appeals tribunal dismissed this argument, citing ineligible precedent defining fraud arsenic occurring nan infinitesimal a suspect tricks personification into surrendering money aliases property, sloppy of immoderate early intent to compensate nan victim.

Judge Parker reiterated this point, stating, "FTX customers were defrauded arsenic soon arsenic Bankman-Fried transferred their money to Alameda sloppy of really powerfully he believed he mightiness later return nan money."

At his March 2024 sentencing, Judge Kaplan remarked that Bankman-Fried understood his actions were incorrect but "made a very bad stake astir nan likelihood of getting caught."

Three of Bankman-Fried's erstwhile deputies had antecedently pleaded blameworthy and testified against him.

From wrong New York’s Metropolitan Detention Center, Bankman-Fried has maintained his innocence, telling Fox Business earlier this week, "I didn't bargain personification costs either."

He added, "Customers person been repaid now 170 percent aliases truthful connected their deposits. It's 1 of nan very fewer cases wherever nan level was over-collateralized, wherever customers were much than made whole. And yet location was, you know, not conscionable a criminal investigation, but a prosecution. And, you know, dozens of years of sentence."

He has besides engaged successful a media tour, including an quality connected Tucker Carlson’s podcast, wherever he criticized courts and crypto regulators and noted his donations to nan GOP.

Personal notes aired during his proceedings revealed he considered a scheme to "come retired arsenic Republican" arsenic FTX faced collapse.

However, Donald Trump told The New York Times in January that he had nary volition of pardoning Bankman-Fried. Michael Avenatti, a erstwhile captive who erstwhile represented Stormy Daniels, criticized Bankman-Fried's pardon efforts.

"Sam and I based on much than erstwhile astir nan aforesaid thing: his refusal to judge ANY work for what he did. Not erstwhile did he admit he’d done thing incorrect — moreover aft I told him many times he could ne'er statesman to redeem himself without that acknowledgment," Avenatti wrote connected X.

"You don’t gain a pardon erstwhile you can’t admit, moreover to yourself, that you did wrong."

Despite antecedently dismissing cryptocurrency arsenic a "scam," Trump has since embraced nan industry, which has go a important philanthropist to his 2024 campaign.

Trump and his family person besides established "highly lucrative, opaque cryptocurrency ventures" and he has pardoned respective individuals progressive successful crypto-related crimes, including Arthur Hayes, Ross Ulbricht, and Changpeng Zhao.

Bankman-Fried is presently held astatine a low-security national situation adjacent Santa Barbara, California, and is eligible for merchandise successful 2044.