The 2nd Circuit Court of Appeals has opened a XEM on SBF's appeal, but judges were skeptical of the argument that FTX.
US Court of Appeals XEM Sam Bankman-Fried's appeal
2nd Circuit Court of Appeals XEM Sam Bankman-Fried's appeal
- On November 5, the Federal Court of Appeals in New York opened a hearing to review the appeal of former CEO of FTX exchange, Sam Bankman-Fried (SBF) , who is currently serving a 25-year prison sentence for seven counts of fraud and misuse of client assets.
FTX co-founder Sam Bankman-Fried has appealed to his 25-year prison sentence, arguing he was “presumed guilty” following the 2022 collapse of the exchange. His lawyers told the advocates court that media pressure, advocates, FTX's new management, and Judge Lewis Kaplan all…
— Wu Blockchain (@WuBlockchain) November 4, 2025
- This is XEM SBF's legal effort to reverse the verdict announced in March 2024, two years after FTX collapsed , causing billions of dollars in losses and shaking the entire crypto industry.
- The trial took place before a panel of three federal judges, including those with experience in complex economic and financial cases. The defendant was represented by attorney Alexandra Shapiro, who has defended many famous figures in major financial cases in the US. Meanwhile, the federal prosecutor came from the Office of the Attorney General of the Southern District of New York (SDNY), which has led the FTX investigation for the past two years.
- According to the appeal documents filed in September 2024, Sam Bankman-Fried's legal team argued that their client did not receive a fair trial, arguing that the trial court did not ensure the principle of "presumption of innocence".
- The defense team asserted that FTX was not bankrupt or insolvent, but merely fell into a temporary lack of liquidation during the crisis period in November 2022. However, according to them, Judge Lewis Kaplan refused to allow this financial data to be presented to the jury, causing the entire trial to proceed based on a one-sided story shaped by the prosecutor and the legal team that took over FTX after the exchange collapsed.
- The judges at the hearing also sharply questioned the defense. According to a report from Inner City Press, Judge Barrington Parker Jr. commented that the attorneys' argument "spent too much time criticizing Judge Kaplan instead of getting to the core of the law," clearly showing the court's skepticism about the appeal request.
- Former federal prosecutor Samson Enzer, now a partner at the law firm Cahill Gordon & Reindel LLP, said the only bright spot in the appeal was the argument that SBF may have acted on the advice of its legal counsel and that the trial court's exclusion of this evidence could have affected the defense's rights, thus providing a rare basis for reconsideration.
- Criminal appeals in federal court typically have a success rate of less than 10%, and typically take 3–6 months before a decision is made. If Bankman-Fried loses, he will continue to serve his 25-year sentence in a federal prison in California, where he has been held since mid-2024.
Background on the appeal and the possibility of a pardon from President Trump?
- The Sam Bankman-Fried (SBF) case is XEM the most serious financial scandal in the history of the cryptocurrency industry, and the biggest fraud of the decade according to US authorities.
- In November 2023, a New York jury found SBF guilty of fraud and conspiracy to commit fraud on seven criminal counts, including misuse of client funds, investor fraud, and bank fraud. In March 2024, Judge Lewis Kaplan sentenced him to 25 years in federal prison.
- During the trial, prosecutors asserted that SBF stole billions of dollars from FTX users to fund risky investments, political donations to the Democratic Party, and personal luxury spending. SBF, in contrast, argued that FTX was only in a temporary liquidation crisis and that its financial decisions were approved by its legal counsel.
- Now, nearly two years after the initial conviction, SBF continues to appeal to the 2nd Circuit Court of Appeals, hoping for a retrial or reduced sentence. However, according to legal experts, the chances of success are very slim, as courts rarely overturn large-scale criminal convictions with clear evidence like the FTX case.
- Following his conviction, SBF is also said to have sought to move closer to conservative political circles, amid President Donald Trump's apparent willingness to pardon influential crypto figures.
- In early 2025, Trump pardoned Ross Ulbricht , founder of Silk Road, and most recentlyChangpeng Zhao (CZ) , former CEO of Binance, after he completed a four-month prison sentence for violating anti-money laundering laws.
- Observers believe that SBF's parents are lobbying for a pardon for their son. However, this possibility is considered very slim, because SBF donated $5.2 million to JOE Biden's 2020 election campaign, making a Trump pardon unlikely.
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