Sam Bankman-Fried, the founder of the now-bankrupt cryptocurrency exchange FTX, has initiated an appeal against his federal fraud and conspiracy conviction, as well as the 25-year prison sentence handed down to him.

Bankman-Fried’s legal team filed a notice of appeal on Thursday, marking a formal step in his legal battle following the sentencing in U.S. District Court in Manhattan two weeks ago.

The entrepreneur was also ordered to forfeit $11 billion in connection with what prosecutors labeled as one of the largest financial frauds in history.

The appeal process will proceed before a three-judge panel of the 2nd Circuit U.S. Court of Appeals based in Manhattan.

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However, statistics suggest the challenges ahead for Bankman-Fried, as federal criminal defendants historically win reversals in fewer than 10% of appeals.

Should he fail at the 2nd Circuit level, Bankman-Fried’s legal recourse would involve petitioning the U.S. Supreme Court, a path fraught with even greater uncertainty.

Customer funds

Bankman-Fried, aged 32, was convicted on seven counts of fraud and conspiracy related to the misappropriation of approximately $10 billion in customer funds.

Prosecutors asserted that he orchestrated a scheme diverting customer funds for investments, political contributions, personal expenses, and loan repayments.

Upon sentencing, Judge Lewis Kaplan expressed concerns about Bankman-Fried’s potential future actions, remarking, “There is a risk that this man will be in a position to do something very bad in the future.” Kaplan noted Bankman-Fried’s apparent lack of remorse for his actions.

Bankman-Fried has maintained his innocence, attributing FTX’s financial troubles to a purported “liquidity crisis” or “mismanagement.”

Notably, four other senior executives from FTX and Alameda Research had previously pleaded guilty.

Ryan Salame, one of them, is slated for sentencing on May 28.