Former FTX CEO Sam Bankman-Fried has asked the U.S. Supreme Court to overturn his fraud conviction and 25-year prison sentence while also challenging an $11 billion forfeiture order imposed as part of his sentence.
As per Bankman-Fried’s appeal reviewed by a CNN report, it argues that evidence about losses suffered by FTX customers was improperly handled during his trial.
He is seeking a new trial and contends that the court should not have allowed prosecutors to present evidence of customer losses while restricting the defense from showing that his investments could have ultimately covered those losses.
Appeal focuses on trial evidence
The appeal centers on the treatment of financial-loss evidence at Bankman-Fried’s trial. His lawyers argue that prosecutors were not required to prove economic loss under the fraud theory used in the case, making evidence of losses potentially prejudicial to the defense.
They also argue that Bankman-Fried should have been permitted to present evidence that FTX’s investments remained sound and could have covered customer obligations. The defense further challenges the $11 billion forfeiture under the Eighth Amendment, which prohibits excessive fines.
The argument draws on a 2025 Supreme Court ruling involving a contractor convicted of wire fraud after using false certifications to secure a bridge-painting contract. The Supreme Court unanimously held the argument that fraud could not be established because the defendants had not intended to cause economic harm.
Bankman-Fried’s lawyers acknowledge that ruling but argue that it raises a separate question about what evidence defendants should be allowed to present when economic loss is not an essential element of the fraud charge.
FTX collapse and previous appeals
The case stems from the collapse of FTX in November 2022. Prosecutors accused Bankman-Fried of directing billions of dollars in customer funds from the cryptocurrency exchange to Alameda Research, the hedge fund he controlled. Prosecutors said the funds were used for risky investments, political donations, and personal expenses.
A Manhattan federal jury found Bankman-Fried guilty on seven counts of fraud, conspiracy, and related charges in November 2023. He was sentenced to 25 years in prison on March 28, 2024, with prosecutors estimating that FTX customers suffered losses of about $8 billion.
Bankman-Fried continued to challenge the conviction after sentencing. In April 2026, U.S. District Judge Lewis Kaplan rejected his pro se request for a new trial.
The U.S. Court of Appeals for the Second Circuit then upheld his conviction and sentence on June 12, 2026, rejecting arguments that his trial was unfair and that the defense had been improperly restricted from presenting evidence about FTX’s financial position.
The latest Supreme Court petition gives Bankman-Fried another opportunity to challenge the handling of evidence in the case, along with the forfeiture order.
The Supreme Court is expected to decide later this year whether to grant review. Most petitions are denied.
Also Read: Nasdaq Bets $100M on Payward’s xStocks Pipeline as Valuation Divergence Widens
