Sam Bankman-Fried has asked the U.S. Supreme Court to overturn his fraud conviction, opening a new chapter in his legal battle over the collapse of cryptocurrency exchange FTX.
The former FTX chief is serving a 25-year prison sentence after a federal jury convicted him in 2023 on seven fraud and conspiracy counts. The Second Circuit upheld that conviction in June, leaving the Supreme Court as his next major avenue for relief.
What Bankman-Fried Is Challenging
Bankman-Fried’s lawyers argue that the trial court improperly prevented him from presenting evidence that FTX had enough assets to repay customers. They point to the bankruptcy process, which has since provided for customers and other creditors to receive substantial recoveries.
His legal team also challenges the roughly $11 billion forfeiture order. They argue that the amount amounts to an excessive fine under the Eighth Amendment.
The Second Circuit rejected Bankman-Fried’s central arguments. The appeals court concluded that prosecutors presented strong evidence showing that he misappropriated billions of dollars in customer and investor funds.
Will the Supreme Court Take the Case?
The filing does not mean the justices will hear the appeal. The Supreme Court receives thousands of petitions each year but typically agrees to review only a small fraction of them.
Bankman-Fried therefore faces a steep hurdle. His petition must persuade at least four justices that the case raises a significant legal question worthy of Supreme Court review.
His argument over customer losses could provide one potential avenue. However, the appeals court already ruled that later recoveries do not erase the alleged fraud that occurred when customer funds were misappropriated.
For now, Bankman-Fried remains imprisoned while the Supreme Court considers whether to grant review. A denial would leave his conviction and 25-year sentence intact, barring other extraordinary legal developments.
