Former FTX CEO Sam Bankman-Fried was unsuccessful in challenging his conviction of fraud and a sentence of 25 years in prison after an appeals court ruled in favor of the decision relating to the downfall of the crypto trading platform FTX.
Court Denies FTX CEO Appeal Request
Three judges sitting on the bench for the U.S. Court of Appeals for the Second Circuit in Manhattan heard the case and found that there was no basis for an appeal regarding the original verdict, according to Reuters. This was because there was evidence given by prosecutors showing proof of fraud and conspiracy in the collapse of the business firm.
The court stated in its ruling that although FTX CEO Sam Bankman-Fried had made public statements that funds belonging to users and investors were secure, evidence suggested otherwise. This was because the money was used for personal purchases, political contributions, among others.
As pointed out by Judge Barrington Parker, although there was an impression that FTX’s message to the public was one of security, what actually happened during the period when FTX CEO Sam Bankman-Fried was at the helm was quite a contrast.
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FTX CEO Loses Appeal, Seeks Trump Pardon
This case is associated with the downfall of FTX in 2022, resulting in huge losses within the crypto industry and making it one of the most prominent financial scandals in recent history.
Apart from the unsuccessful appeal, FTX CEO Sam Bankman-Fried is also petitioning US President Donald Trump for a presidential pardon. The application was formally filed with the US Department of Justice Pardon Office, but there seems to be no sign of backing from the White House.
Source: justice.gov
Trump has already indicated that there were no intentions to give him any clemency in this matter. However, despite these statements, the ex-crypto executive still tries different ways to reduce his punishment.
In another significant case, Trump has shown mercy by granting clemency, including pardoning Ross Ulbricht, who was involved in developing Silk Road, a black market website used to conduct Bitcoin transactions.
As for now, the decision means that FTX CEO Sam Bankman-Fried remains behind bars as his conviction stands unaltered following the largest ever bankruptcy event in the crypto sector’s history.
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