Appeals Court Skeptical of SBF’s Conviction Challenge

According to CNBC, Sam Bankman-Fried’s appeal of his FTX fraud conviction faced intense skepticism from a three-judge panel at the 2nd Circuit U.S. Court of Appeals on Tuesday. The 33-year-old founder, convicted in November 2023 of seven criminal counts related to multi-billion-dollar fraud at cryptocurrency exchange FTX and hedge fund Alameda Research, is currently serving a 25-year prison sentence. His attorney Alexandra Shapiro was repeatedly interrupted by judges as she argued for a new trial, claiming the original proceeding was “fundamentally unfair.” Judge Barrington Parker directly challenged Shapiro, asking if she seriously believed testimony about attorneys’ roles would have changed the outcome, while noting there was “very substantial evidence of guilt.” Bankman-Fried’s parents watched from the courtroom gallery as the appeals court appeared deeply unconvinced by the defense arguments.

The appeal that wasn’t convincing

Here’s the thing about appeals – they’re not do-overs. The defense basically argued that Bankman-Fried should have been able to testify about lawyers’ involvement in preparing documents. But the judges weren’t buying it. Judge Parker’s question cut right to the heart of the matter: would this testimony really have changed anything? Given the mountain of evidence against SBF, that seems… unlikely.

Where this leaves SBF

So what happens now? The appeals court will issue a written ruling, probably in the coming weeks or months. Given the skepticism displayed during oral arguments, it’s hard to imagine them overturning the conviction. These judges seemed genuinely baffled by the defense’s position. I mean, when a judge tells you there’s “very substantial evidence of guilt” during your appeal, that’s not exactly a good sign.

Bankman-Fried’s legal team could theoretically take this to the Supreme Court, but let’s be real – the chances of them hearing this case are slim to none. The evidence against him was overwhelming, and the trial court gave him plenty of procedural protections. This appeal always felt like a long shot, and Tuesday’s hearing made that crystal clear.

The bigger picture for crypto

This case was never just about one guy. It was about establishing that crypto executives can’t operate like wild west cowboys and expect to avoid consequences. The 2nd Circuit Court of Appeals handling this appeal is one of the most influential in the country, particularly for financial cases. Their eventual ruling will send a strong message to the entire crypto industry about what level of accountability they can expect.

Look, the crypto world needed this reality check. After FTX’s collapse vaporized billions in customer funds, regulators and courts were always going to come down hard. Bankman-Fried’s case sets the precedent – and it’s not looking good for other crypto executives facing similar charges. The era of “move fast and break things” in crypto? That’s over.