State of Crypto: SBF (Somehow) Had Another Bad Day in Court
Sam Bankman-Fried’s appeal hearing before the U.S. Court of Appeals for the Second Circuit showed limited progress toward securing a new trial. During the Nov. 4 session, judges closely questioned his defense team’s arguments that the original trial was unfair due to the judge’s alleged bias and restrictive evidentiary rulings.
The panel also focused on the prosecution’s justification for the massive $11 billion forfeiture order tied to FTX’s collapse. While the defense argued that procedural errors undermined the fairness of the case, the judges appeared unconvinced that these issues warranted overturning the conviction. The hearing left little indication that Bankman-Fried’s appeal would succeed, keeping his conviction and sentence under firm scrutiny as the high-profile crypto case continues through the appeals process.
What was at stake in the Sam Bankman-Fried appeal hearing
Defense attorney Alexandra Shapiro argued the trial was “fundamentally unfair,” pointing to limits on testimony about attorney involvement and the inability to argue that customers could be made whole. Judges responded with skepticism, asking whether any excluded testimony would have plausibly swung the jury. Reuters+2AP News+2
Judges’ toughest questions in the Sam Bankman-Fried appeal hearing
Judge Barrington D. Parker pressed whether allowing testimony about lawyers would really have led to acquittals: “Are you seriously suggesting … the ‘not guilties’ would have rolled in?” Judges Lee and Kahn also challenged the defense’s solvency/liquidity framing and relevance to fraud.
Government’s case and the forfeiture debate
Assistant U.S. Attorney Thane (Nathan) Rehn maintained the trial was fair and that misappropriation occurred when customers were unable to withdraw funds they were told were available. The panel, however, queried the necessity and scale of the proposed $11 billion forfeiture especially amid bankruptcy recoveries pegged to Nov. 2022 USD values rather than current crypto prices.
Where the appeal stands now
The Second Circuit took the matter under advisement. Bankman-Fried is serving a 25-year sentence imposed in March 2024 after his fraud conviction tied to FTX’s 2022 collapse. A ruling date was not announced.
Context & Analysis
Appellate wins on bias or evidentiary exclusion are rare absent clear prejudice. The panel’s focus on forfeiture sizing versus signaling reversible error suggests the conviction is more likely to be affirmed, with potential adjustments to financial penalties still in play. Inference based on questioning patterns reported by multiple outlets.
Conclusion
The Second Circuit offered few signs that it would overturn Sam Bankman-Fried’s conviction, signaling that the original verdict is likely to stand. Judges showed limited interest in revisiting the broader trial outcome, focusing instead on specific financial and procedural issues.
The main uncertainty now revolves around the scope of the $11 billion forfeiture order. Appellate guidance could shape how those funds interact with FTX’s ongoing bankruptcy proceedings, particularly where asset recoveries depend on outdated dollar valuations. The decision may determine how much value creditors ultimately reclaim and clarify how forfeiture aligns with bankruptcy law in large crypto collapses.
FAQs
Q : What happened at the Sam Bankman-Fried appeal hearing?
A : Judges questioned whether alleged trial errors would have changed the verdict and pressed the government on forfeiture.
Q : Which judges heard the appeal?
A : Circuit Judges Eunice Lee, Maria Araujo Kahn, and Barrington D. Parker.
Q : What is the status of the $11 billion forfeiture?
A : The panel suggested the amount may be excessive; a decision is pending.
Q : Is SBF’s conviction likely to be overturned?
A : The panel’s questioning appeared skeptical; no ruling yet.
Q : How does bankruptcy recovery factor in?
A : Claims are tied to November 2022 dollar values, not current crypto prices central to forfeiture questions.
Q : What sentence is he serving?
A : 25 years in federal prison, imposed in March 2024.
Facts
Event
Oral argument in SBF’s Second Circuit appeal; judges express skepticism; forfeiture questioned.Date/Time
2025-11-04T10:00:00-05:00 (argument day, local)Entities
Sam Bankman-Fried; U.S. Court of Appeals for the Second Circuit; Judges Eunice C. Lee, Maria Araujo Kahn, Barrington D. Parker; U.S. Attorney’s Office, SDNY. AP NewsFigures
25-year sentence (Mar 28, 2024); proposed $11 bn forfeiture. Reuters+1Quotes
“Are you seriously suggesting … the ‘not guilties’ would have rolled in?” Judge Barrington D. Parker (from AP report). AP NewsSources
AP (apnews.com), Reuters (reuters.com)