A federal appeals court unanimously upheld Sam Bankman-Fried's fraud conviction and 25-year prison sentence on Friday. The Second Circuit Court of Appeals rejected the FTX co-founder's argument that FTX was solvent and could have repaid customers, ruling that his misrepresentations alone constituted fraud. The judges cited a 2025 Supreme Court case holding that a material misstatement to obtain money is fraud, even without intent to cause net losses. Bankman-Fried falsified records to conceal unauthorized use of customer funds. With the appeal denied, a presidential pardon appears to be his only remaining option. He has sought to curry favor with President Donald Trump, but Trump has signaled he does not intend to grant clemency. Bankman-Fried formally applied for a pardon this week.

Key facts

• Appeals court unanimously upheld SBF's fraud conviction and 25-year sentence.
• Court rejected argument that FTX's solvency negated fraud; misrepresentations alone sufficed.
• SBF falsified records to conceal unauthorized use of customer funds for personal expenses.
• With appeal denied, presidential pardon is his only remaining legal recourse.
• SBF formally applied for a pardon this week; Trump has signaled he likely won't grant it.