Sam Bankman-Fried filed an appeal against the FTX fraud case with the U.S. Supreme Court

Sam Bankman-Fried’s final direct challenge to the Supreme Court has entered a new phase.

As the U.S. federal government is required to respond by November 16 to the petition requesting a retrial and the cancellation of the confiscation order worth $11.02 billion, Bankman-Fried’s last attempt to appeal his fraud conviction is progressing through the Supreme Court process. On September 10, he filed a writ of certiorari, after the Second Circuit Court of Appeals rejected his appeal in June. The Supreme Court announced its interest in the case on September 15, with a deadline of October 15 for a response from the government. However, on October 13, the court granted the government an extension of one month.

Bankman-Fried requests the Supreme Court to review his conviction and confiscation order. But filing a petition does not mean that the justices will definitely take up the case. The main issue now is whether at least four justices will vote to accept the case.

What does Bankman-Fried ask the Supreme Court to decide?

The petition filed by Bankman-Fried focuses on two legal issues. The first issue relates to the evidence regarding the ultimate losses suffered by FTX customers, and whether the lower court improperly prevented him from presenting evidence that the investments made with customers’ funds retained sufficient value to cover their losses. His lawyer argued that the prosecutors told the jury that FTX customers had lost billions of dollars, although government laws do not require proof of permanent economic damage to customers. The Second Circuit Court of Appeals rejected this argument, concluding that Bankman-Fried was guilty of fraud when he unauthorizedly transferred customers’ funds to Alameda Research, regardless of whether he believed those funds could be recovered in the future. The appeals court upheld all seven charges of fraud and conspiracy, sentencing Bankman-Fried to 25 years in prison. This petition is partly based on a previous fraud case heard by the First Circuit Court of Appeals. In that case, due to the evidence of investment losses and the prosecutors’ descriptions of high-risk transactions, the jury was deemed biased toward questions that are not necessary for proving the government’s fraud theory, resulting in a request for a retrial. The Supreme Court’s decision concerns the fairness of the trial and the laws related to fraud, rather than whether FTX’s subsequent efforts to recover funds can effectively remedy the abuses committed with customers’ money. Does FTX’s efforts to repay creditors help Bankman-Fried?自2022年11月交易所崩溃以来，FTX破产财产恢复的价值远超许多观察人士最初的预期。信托基金于7月开始另一轮约9亿美元的分配，预计累计债权人赔付额接近100亿美元。某些类别的债权人获得的回报已超过其经允许的破产索赔的美元价值。然而，FTX债权人的还款是根据破产程序计算的，其中加密货币索赔通常以申请日的价格估值，而非随后的市场高点。对于班克曼-弗里德的刑事案件而言，更重要的是，第二巡回上诉法院裁定，最终的还款并不能消除潜在的欺诈行为。法院将未经授权转移客户财产视为相关的剥夺行为，而不是要求检察官证明受害者会永久失去这笔钱。这一立场也得到了最高法院2025年Kousisis案的支持，该案裁定，即使受害者获得了具有同等经济价值的东西，欺诈性诱导仍可构成联邦电汇欺诈。因此，班克曼-弗里德的请愿书面临着一个挑战：即在更广泛的欺诈判例背景下，展示其证据论点构成了独立的审判偏见问题。

为什么110亿美元的没收可能是更关键的问题？

请愿书还单独攻击了基于第八修正案禁止过度罚款的110.2亿美元没收令。班克曼-弗里德辩称，鉴于他没有剩余资产来满足这一判决，且政府可以在他出狱后追讨未来的收入，该判决实际上创造了一种终身义务。第二巡回上诉法院承认110亿美元的没收金额巨大，特别是在许多受害者最终可能得到赔偿的情况下，但仍维持了该判决。法院指出，联邦没收法可以使用犯罪涉及的收益或财产来衡量金额，而不仅仅是匹配受害者的最终净损失。如果最高法院仅就没收问题作出裁决，不一定会影响班克曼-弗里德的定罪或监禁刑期。大法官们理论上可以在不命令进行新的刑事审判的情况下解决财务判决问题。

投资者启示

没收问题影响范围超出FTX，因为它测试了当欺诈受害者后来收回大量资金时，终身财务惩罚能延伸多远。

11月16日之后会发生什么？

Once the government submits its response, Bancman-Fried may present counterarguments before the case is brought before the Supreme Court for discussion. If four justices agree to hear the case, a written debate and oral hearing will take place. If fewer than four justices agree, the petition will be dismissed, and the decision made by the Second Circuit Court of Appeals will remain in effect. Bancman-Fried is currently exploring the possibility of obtaining an executive pardon, but this has nothing to do with the case before the Supreme Court. In July, the U.S. Senate passed a non-binding resolution opposing any pardon for this former FTX executive. Currently, the government’s response dated July 16 is the next official milestone. The Supreme Court has not yet agreed to take the case under its jurisdiction. Bancman-Fried’s conviction, 25-year sentence, and the judgment awarding $11.02 billion in fines remain intact.