Legal team for former FTX chief outlines Supreme Court appeal strategy
If the nation's highest court agrees to hear the appeal, a ruling could potentially be issued by June of 2027.
Following his 2023 criminal conviction, an unsuccessful 2026 appeal to the Second Circuit court, and while continuing to wait for a presidential pardon that remains uncertain, Sam "SBF" Bankman-Fried, the former chief executive of FTX, now pins his hopes on bringing his criminal case before the United States Supreme Court.
In a conversation with Cointelegraph, Jeffrey Fisher—legal counsel from Hecker Fink LLP representing Bankman-Fried in his appeal to the Supreme Court of the United States (SCOTUS)—discussed the prospective timeline for the former cryptocurrency exchange leader's case and what observers might anticipate should the justices decide to grant his petition for a writ of certiorari, which could potentially lead to a retrial.
While Bankman-Fried pursues Supreme Court review, he simultaneously seeks clemency from President Donald Trump. Fisher explained that under SCOTUS regulations, SBF must submit a petition for a writ of certiorari within a 90-day window following an appellate court's decision, asking the justices to review the case.
The nation's highest court originally set Oct. 15 as the deadline for the federal government to respond to SBF's petition, but has already approved an extension pushing that date to Nov. 16, potentially enabling the justices to determine whether they'll hear the case in late 2026 or the opening months of 2027. Should the court decide to grant review of Fisher's client's case, a decision could be released during the present term, concluding in June 2027, or alternatively during the following term, which commences one year from the present.
The former FTX chief was found guilty on seven felony fraud charges connected to the improper use of customer deposits by FTX, the digital currency exchange he established and operated, which declared bankruptcy in November 2022. His sentence included 25 years of imprisonment and a directive to pay $11 billion in forfeiture.
'Assets are fine': Why FTX's losses and recoveries were irrelevant at trial
The Supreme Court petition filed by Bankman-Fried presents two principal arguments for the justices to consider, should they choose to review the case, focusing on lower courts considering "evidence indicating victims lost money" and contending that the $11 billion forfeiture directive imposed after his conviction contravened the Eighth Amendment's ban on "excessive fines."
"The Supreme Court has expressed concern over the years for prosecutorial overreach in criminal fraud prosecutions," Fisher explained to Cointelegraph. "This kind of evidence introduced in this prosecution raises a real question about prejudice to the defendant."
The position advanced by government prosecutors during SBF's criminal proceedings and reinforced by the Second Circuit's decision determined it was "immaterial as a matter of law" whether the former chief executive possessed the resources and intended to compensate FTX's victims for their financial losses at the cryptocurrency platform.
"As the district court made clear, FTX customers were defrauded as soon as Bankman-Fried transferred their money to Alameda regardless of how strongly he believed he might later return the money."
Second Circuit, June 2026 decision
Fisher notes this legal theory stands apart from numerous fraud prosecutions in which a defendant "swindled people out of money and enriched himself at their expense."
"Our whole point is the theory the government chose makes it irrelevant whether any customers lost money or, if so, how much," the attorney stated.
The petition to the Supreme Court referenced the highest court's decision in Kousisis v. United States in 2025, which established that prosecutors could "seek decades-long prison sentences anytime people are induced by misrepresentations to part with their money — even if they suffer no pecuniary harm."
Conversely, SBF's legal team contended that the 2007 First Circuit decision in United States v. Carpenter, where a defendant "intended all along to ensure his customers suffered no financial losses," bore greater relevance to the FTX situation. In that case, the appellate court initially determined that a jury's verdict may have stemmed from "moral disapproval" rather than fraud-related evidence.
In an interview with Cointelegraph, Mark Bini, a former prosecutor at both federal and state levels who currently serves as a partner at Reed Smith, indicated he believes the likelihood that the court would accept SBF's contentions and authorize a new trial "seems low," though he found the forfeiture circumstances "really interesting" given the magnitude: $11 billion. He characterized the reliance on United States v. Carpenter rather than Kousisis v. United States as an "uphill battle" for Bankman-Fried from a legal standpoint.
Although many FTX customers ultimately received payments for their exchange losses starting in 2025, the cryptocurrency valuations were calculated based on prices at the moment of the 2022 collapse, signifying that many individuals likely missed out on appreciation during the three-year interval between bankruptcy and reimbursements.
How forfeiture could affect SBF's 'future livelihood'
The forfeiture order imposed on Bankman-Fried may continue to impact him well beyond his prison release, potentially granting the government authority to claim his future income. The former cryptocurrency exchange executive faces imprisonment until 2043.
"He has no money to pay it," Fisher remarked. "Under the terms of the penalty, it is an $11 billion debt for the rest of his life, to the government. Any dime he would ever make upon release would have to be turned over to the government [...] There's rules, maybe he gets to keep a dime."
Should the court accept the forfeiture-related argument while dismissing the assertion that SBF held the right to introduce evidence regarding user repayment, Bini suggested it's more probable the court would decrease the forfeiture sum rather than order a new trial.
"It's a huge forfeiture amount and there is this tension because the case law is such that the government is entitled to seek both forfeiture and restitution," the Reed Smith attorney noted, further adding: "It's a very unusual case where the defense is arguing that 'gosh, everyone is being made whole' [...] yet you have this tremendous forfeiture."
Cointelegraph contacted the Justice Department seeking commentary on the case but had not received a reply.
Caroline Ellison now employed at a charitable organization
Caroline Ellison, the former chief executive of Alameda Research and among the key individuals connected to FTX's collapse, has taken a position at Manifund, a charitable fundraising entity affiliated with the effective altruism movement, following her prison sentence served under a plea agreement with federal authorities.
Based on statements from Manifund co-founder and chief executive Austin Chen, Ellison commenced a work trial at the organization on July 13, approximately half a year after her release from federal detention. She transitioned to a full-time position on Aug. 10.
"I believe in redemption. Caroline has admitted her faults, worked to make creditors whole, and served her time in prison. I'd like to give her the opportunity to contribute back to the world; I hope that the world will concur."
Austin Chen, Manifund CEO
In an uncommon public comment, Ellison expressed that she was "grateful to Austin for giving me a second chance, and judging me on my current work performance rather than my past."
A substantial number of the responses to Chen's Substack announcement were intensely critical, with characterizations ranging from describing Ellison's employment as an "extremely rogue move" to an action demonstrating "truly terrible judgment."
"[Ellison is] a cynical opportunist who stole billions, and got a sweetheart deal because prosecutors were willing to give everything up to get Sam. She was extremely lucky that she got such a light sentence. The utmost shame on you for attempting to rehabilitate her."
Nic Carter, Coin Metrics co-founder