Sam Bankman-Fried officially petitioned the United States Supreme Court on September 10, 2026. The former head of crypto exchange FTX asked the nation’s highest court to review his conviction on seven fraud charges. Through this appeal, he is also seeking to overturn his 25-year prison sentence and an $11.02 billion asset forfeiture order.
The petition follows a ruling by the Second Circuit Court of Appeals that rejected his appeal in June 2026. The appellate court upheld all convictions handed down by US District Judge Lewis Kaplan during the initial trial.
A Defense Barred from the Courtroom
Bankman-Fried’s attorney, Jeffrey Fisher, argued primarily that the original trial was unfair. Fisher pointed to the trial judge’s decision allowing prosecutors to present extensive evidence regarding potential customer losses to the jury.
In contrast, the defense was barred from introducing counter-evidence regarding the availability of client funds. Fisher emphasized that Bankman-Fried was denied the opportunity to demonstrate that the combined assets of FTX and trading firm Alameda Research were actually sufficient to repay all customer deposits over time.
Beyond contesting evidentiary access, the legal defense team also challenged the financial penalties imposed by the court. They argued that the $11.02 billion forfeiture order violates the Excessive Fines Clause under the Eighth Amendment to the United States Constitution.
Clash with 2025 Legal Precedent
The Second Circuit Court of Appeals’ June decision rejecting Bankman-Fried’s appeal was anchored in a 2025 Supreme Court precedent from the case Kousisis v. United States.
The Kousisis ruling established that a material misrepresentation made to induce a financial transaction is sufficient to prove federal fraud. Under this precedent, prosecutors are not required to prove that the defendant intended to inflict a net economic loss on victims.
The fraud charges originated from the unauthorized transfer of billions of dollars in FTX customer funds to Alameda Research accounts. The exchange users’ funds were used to finance speculative investments, political donations, luxury real estate purchases, and personal expenses for company executives.
For former FTX customers, the petition prolongs the legal proceedings surrounding a case that locked up billions of dollars in deposits. The Supreme Court’s decision to grant or deny the petition will be a decisive chapter in the ongoing legal saga. Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
