Sam Bankman-Fried's appeal against his 25-year prison sentence and fraud conviction is scheduled to be heard by the U.S. Second Circuit Court of Appeals on November 4, 2025. This hearing comes almost exactly two years after he was convicted in November 2023 on seven counts, including fraud and conspiracy, related to the collapse of his crypto exchange, FTX.

Bankman-Fried's legal team submitted the appeal in early 2025, centering it on allegations of procedural irregularities, including claims of judicial bias and the incomplete presentation of evidence during the trial. They argue that key evidence was omitted, potentially influencing the jury's decision. Specifically, the defense has accused Judge Lewis Kaplan of being unfairly biased during the trial. They claim the judge mocked their defense, criticized their questioning in front of the jury, and pressured jurors to reach a quick verdict.

The appeal also takes issue with Judge Kaplan's decision to prevent Bankman-Fried from arguing that FTX users had not actually lost money due to potential recoveries through bankruptcy proceedings. His legal team contends that this ruling allowed prosecutors to present a "false narrative" of permanent customer losses to the jury. Additionally, the appeal criticizes Judge Kaplan for limiting Bankman-Fried's ability to testify about relying on legal advice for certain business decisions.

In a filing, Bankman-Fried's lawyer, Alexandra Shapiro, stated that her client "was never presumed innocent" and that he "was presumed guilty by the judge who presided over his trial". She also argues that the FTX debtor estate and its lawyers, along with federal prosecutors eager for quick headlines, contributed to this presumption of guilt.

The U.S. government, however, rejects these arguments, asserting that Bankman-Fried's appeal fails to demonstrate any errors or prejudice in the original trial. They maintain that the jury's verdict and the trial's outcome were sound. The government argues that Bankman-Fried received the specific items he sought from the debtors and has failed to identify any other material evidence he was denied. They conclude that he failed to show any violation of his right to a fair trial, solidifying their stance that the conviction and sentence should stand.

Should the appellate court reverse the lower court ruling, it could mean a new trial or sentencing hearing for Bankman-Fried. A successful appeal could trigger a new trial, impact FTX bankruptcy proceedings, and set legal precedents for crypto founder cases. The outcome of the appeal could result in a new trial or a reduced sentence and might also impact ongoing FTX bankruptcy proceedings and creditor claims.

Legal experts have noted that the Second Circuit's ruling could set a precedent for how similar cases involving crypto founders are handled in the future. The hearing is being closely watched by the broader crypto industry, which has faced increased regulatory scrutiny in recent years. Analysts suggest that the decision could shape future regulatory frameworks for centralized crypto exchanges and investor protections.

Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy in November 2023. In March 2024, he was sentenced to 25 years in prison and ordered to forfeit $11 billion for fraudulent schemes that misappropriated billions of dollars from FTX customers and defrauded both FTX investors and lenders to Alameda Research, FTX's sister trading firm.