NEW YORK CITY, New York: Sam Bankman-Fried has lost his appeal against his fraud conviction and 25-year prison sentence stemming from the collapse of cryptocurrency exchange FTX, a major setback for the former crypto billionaire.

A three-judge panel of the 2nd U.S. Circuit Court of Appeals on Friday unanimously upheld the conviction, concluding that the evidence presented by prosecutors was overwhelming.

The judges said prosecutors' case against Bankman-Fried "was, conservatively stated, robust."

"While he was publicly reassuring customers, investors, and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments," Circuit Judge Barrington Parker wrote on behalf of the panel.

Bankman-Fried's lawyers did not immediately respond to requests for comment. They may seek further review from the full appeals court or ask the U.S. Supreme Court to hear the case.

The former FTX chief executive is also seeking a pardon from President Donald Trump, according to the Justice Department's Office of the Pardon Attorney. The White House and Justice Department did not immediately comment.

Bankman-Fried was once one of the most prominent figures in the cryptocurrency industry and amassed a multibillion-dollar fortune before FTX collapsed in 2022.

A federal jury in Manhattan convicted him in 2023 on seven felony counts, including fraud and conspiracy.

Prosecutors said he misappropriated US$8 billion in customer funds to cover losses at Alameda Research, his crypto-focused hedge fund, describing the scheme as a "fraud of epic proportions."

Bankman-Fried pleaded not guilty and testified at trial that, although he made mistakes while running FTX, he never stole customer funds.

His appeal centered on arguments that U.S. District Judge Lewis Kaplan improperly limited evidence that could have supported his claim that FTX had sufficient assets to meet customer withdrawal requests.

The appeals court rejected that argument, citing precedent holding that fraud occurs when victims are deceived into handing over money or property, regardless of whether a defendant intends to repay them.

"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," Parker wrote.

At sentencing in March 2024, Judge Kaplan said Bankman-Fried knew his conduct was wrong but "made a very bad bet about the likelihood of getting caught."

Three former senior associates of Bankman-Fried pleaded guilty in connection with the case and testified against him during the trial.

Bankman-Fried is serving his sentence at a low-security federal prison near Santa Barbara, California. He is eligible for release in 2044.