Sam Bankman-Fried has petitioned the U.S. Supreme Court to overturn his fraud conviction and void an $11 billion forfeiture order, arguing the trial court improperly excluded evidence that FTX and Alameda Research had sufficient assets to repay customers. The appeal challenges evidence rules under the 'fraudulent inducement' theory of wire fraud, referencing the 2025 Kousisis v. United States precedent. Bankman-Fried, serving a 25-year sentence, has also sought a pardon from Donald Trump.
Supreme Court appeal petition
- ▪Sam Bankman-Fried filed a petition with the U.S. Supreme Court on September 10, 2026, seeking to overturn his fraud conviction and requesting a new trial.
- ▪In addition to his Supreme Court appeal, Sam Bankman-Fried has applied for a pardon from U.S. President Donald Trump.
- ▪Sam Bankman-Fried is serving a 25-year prison sentence following his conviction on seven counts of fraud, conspiracy, and money laundering related to the collapse of the cryptocurrency exchange FTX.
Fraudulent inducement evidence rules
- ▪Supreme Court attorney Jeffrey Fisher stated that introducing evidence of victim losses is distracting and prejudicial when the government's fraud theory does not require proving such losses occurred.
- ▪Sam Bankman-Fried's Supreme Court petition argues that in a fraudulent inducement prosecution, a trial court should not admit evidence of victim losses if the defense is barred from showing those losses were repaid.
FTX customer asset repayment
- ▪Sam Bankman-Fried's defense argues that the trial court blocked evidence showing that FTX and Alameda Research held sufficient assets to ultimately make investors and customers whole.
- ▪The Supreme Court petition asserts that FTX and Alameda Research always held more than enough assets to repay customers, noting that customers have since been repaid with substantial interest.
Eleven billion dollar forfeiture
- ▪The appeal argues that the $11 billion forfeiture order violates the Eighth Amendment to the U.S. Constitution, which prohibits excessive fines.
- ▪Sam Bankman-Fried's appeal requests the Supreme Court to throw out a court order requiring him to forfeit $11 billion in assets.
Kousisis wire fraud precedent
- ▪The Kousisis v. United States case involved a Department of Transportation contractor who used a passthrough scheme and false certifications to bypass disadvantaged business requirements.
- ▪The Supreme Court's 2025 decision in Kousisis v. United States established that an action can constitute wire fraud without the intent of net economic harm.
- ▪In June 2026, the U.S. Court of Appeals for the Second Circuit affirmed Sam Bankman-Fried's conviction, relying on the Supreme Court's 2025 decision in Kousisis v. United States.
Debatable claims
- ▪President Trump should pardon Sam Bankman-Fried
- ▪Courts should bar victim loss evidence in fraud trials if repayment evidence is excluded
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