Sam Bankman-Fried has asked the U.S. Supreme Court for a new trial, escalating his challenge to the seven-count fraud conviction that led to a 25-year federal prison sentence. He is also asking the justices to overturn the $11.02 billion forfeiture included in his criminal judgment.

A Manhattan jury convicted the former FTX chief executive in November 2023 on two counts of wire fraud, two counts of wire-fraud conspiracy, and conspiracy charges involving securities fraud, commodities fraud and money laundering. Prosecutors said billions of dollars in FTX customer funds were diverted to Alameda Research and used for investments, loan repayments, political contributions and personal spending. Bankman-Fried was later sentenced to 25 years in prison. The U.S. Department of Justice announced the sentence here:

Repayment Evidence Returns to the Legal Fight

Bankman-Fried’s Supreme Court petition again challenges restrictions imposed by Judge Lewis Kaplan on evidence concerning his intention to repay customers and the eventual value of investments made with FTX funds. His lawyers argue that the defense should have been permitted to counter claims of customer losses with evidence that assets remained available and later appreciated enough to support creditor recoveries.

The Second Circuit rejected that argument when it left his conviction and sentence intact on June 12. The court held that customers were defrauded when their money was transferred to Alameda through false representations, regardless of whether Bankman-Fried believed the funds could eventually be returned. It also upheld the exclusion of evidence concerning the later value of his investments, ruling that subsequent appreciation did not determine whether the original transfers constituted fraud. The appellate opinion is available here:

Meanwhile, FTX’s bankruptcy estate has returned billions of dollars through its creditor program, including another distribution round that began July 31. Those recoveries provide Bankman-Fried’s lawyers with a factual basis for arguing that customers ultimately received substantial value. They do not, however, change the Second Circuit’s conclusion about when the alleged fraud was completed.

$11.02 Billion Forfeiture Faces Constitutional Challenge

Bankman-Fried is separately challenging the $11.02 billion forfeiture under the Eighth Amendment’s Excessive Fines Clause. He argues that the judgment is disproportionate, particularly because many FTX victims are being repaid and because he is unlikely ever to satisfy the full amount.

The Second Circuit rejected both his challenge to the forfeiture calculation and his constitutional argument. The court found that Bankman-Fried had not established the direct costs needed to reduce the calculation. It also held that an inability to satisfy the judgment, by itself, did not make the penalty grossly disproportionate.

Supreme Court Review Remains Discretionary

The Supreme Court is not required to hear the case. Bankman-Fried is asking the justices to review evidentiary rules governing fraud prosecutions and the scope of his forfeiture after the Second Circuit described the trial evidence against him as “robust” and affirmed the district court’s judgment in full.

His seven convictions, 25-year prison sentence and $11.02 billion forfeiture remain in force while the Supreme Court considers whether to take the case. The original report was published by Crypto Adventure: https://cryptoadventure.com/sam-bankman-fried-asks-supreme-court-to-overturn-ftx-fraud-conviction/