- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 24-961-cr (2nd Circuit, Jun 12,2026) Published
- Tag(s):
-
- Ruling:
- The Second Circuit Court of Appeals affirmed the district court's judgment of conviction of Samuel Bankman-Fried. The district court’s evidentiary and procedural rulings and jury instructions were not in error. Further, a $11 billion forfeiture order was constitutional and permissible under the applicable statutes.
- Procedural context:
- On appeal, Bankman-Fried challenged the district court's procedural and evidentiary decisions that, he contended, prevented him from presenting a full defense to the government's case. He also disputed the court's authority to issue and the constitutionality of the forfeiture order. The Second Circuit’s opinion detailed the robust body of evidence and testimony produced at trial to establish Bankman-Fried's fraudulent actions and inappropriate use of customer funds. The circuit court affirmed the trial court's evidentiary rulings on the grounds that Appellant's belief that his customers and lenders would ultimately suffer no losses from his actions was immaterial as the government did not need to prove that Bankman-Fried intended to cause economic loss in order to convict him under these counts and, regardless, Appellant was permitted to present his version of events. The Second Circuit also found that the trial court's decision to deny Appellant's motion in limine to preclude evidence of FTX and Alameda's bankruptcies was also correct as the undisputed facts of these bankruptcies were inextricably linked to the prosecution's theory of fraudulent intent. Next, the Second Circuit held that the jury instructions on the scienter requirement for each count were proper and that the trial court's rulings on Appellant's advice-of-counsel defense and the denial of his motions to compel FTX were also correct. Finally, the Second Circuit ruled that the forfeiture order did not violate the Excessive Fines Clause of the Eighth Amendment, that the forfeiture amount was properly calculated under 18 U.S.C. § 981(a)(1)(c), and the trial court had the authority to impose an in personam money judgment under 21 U.S.C. § 853.
- Facts:
- Appellant/Defendant Samuel Bankman-Fried served as CEO of FTX.com, a cryptocurrency exchange, from its founding in 2019 to November of 2022 before it entered bankruptcy. Bankman-Fried also served as CEO of Alameda Research, a cryptocurrency hedge fund and trading firm, from 2017 to 2021. Bankman-Fried exercised a great deal of control over both companies and Alameda became FTX's largest customer and market maker. In 2022, however, the Federal Reserve's decision to raise interest rates caused the cryptocurrency market to crash and Alameda's net asset value fell from $40 billion to $10 billion. This loss in value and a rapid loss of customer confidence led to Alameda's liquidation. Bankman-Fried was then replaced as FTX's CEO and it filed for bankruptcy. In December of 2022, Bankman-Fried was indicted on numerous counts of fraud for the misappropriation of customer funds. A jury found Bankman-Fried guilty on all counts. He was sentenced to 25 years' imprisonment, to be followed by three years of supervised release. The district court also ordered the forfeiture of $11 billion. Bankman-Fried timely appealed his conviction and the forfeiture order.
- Judge(s):
- Parker, Lee, and Kahn
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