Chapter 3: FTX update, June 12, 2026
On June 12, 2026, Sam Bankman-Fried failed in his bid to appeal against his fraud conviction in the FTX case.
A three-judge panel of the New York—based Second U.S. Appeals Circuit, rejected Bankman-Fried's argument that he was improperly prevented from introducing exculpatory evidence at his trial.
Bankman-Fried has now submitted a formal application for a pardon from the U.S. President “after completion of sentence.” Bankman-Fried has been using social media and interviews from prison to lobby for a pardon from Trump, who has pardoned or commuted the sentences of other white-collar defendants in his second term.
Bankman-Fried is serving a 25-year prison sentence over the collapse of the FTX cryptocurrency exchange he founded and is being held at a low-security federal prison near Santa Barbara, California. He is eligible for release in 2044.
No Author Listed (2026), Sam Bankman-Fried loses bid to appeal against fraud conviction in FTX case, the Guardian, June 12: https://www.theguardian.com/business/2026/jun/12/sam-bankman-fried-loses-appeal?CMP=Share_iOSApp_Other
Roy, Yash (2026), "Bankman-Fried Quest for Trump Pardon Hits Congress Pushback," Bloomberg, June 17: https://www.bloomberg.com/news/articles/2026-06-17/bankman-fried-s-ques…
Chapter 7: Petters update, June 12, 2026
On June 12, 2026, a U.S. bankruptcy judge approved the Chapter 11 bankruptcy of auto parts maker First Brands, allowing it to move ahead with litigation against the company's indicted founder and other insiders in an attempt to recoup money for creditors. Further echoes of Petters' Ponzi scheme 2008!
Knauth, Dietrich (2026), First Brands Moves Ahead With Liquidation Plan," Reuters June 12: https://www.reuters.com/legal/litigation/first-brands-moves-ahead-with-…