The legal fallout for FTX continues to unfold as new testimony sheds light on past plea negotiations and ongoing defense efforts. Recent statements from a former prosecutor, along with renewed arguments from Sam Bankman-Fried's legal team, show the broader consequences still reverberating through cases related to the exchange's 2022 collapse.
In brief
- Sassoon denies offering Bond immunity as eyes turn to Salame's plea deal and accusations of pressure in FTX investigation.
- Bond disputes charges related to $400,000 in campaign funds allegedly linked to FTX, arguing prosecutors acted unfairly after Salame's plea.
- Key former FTX and Alameda executives are serving sentences, increasing pressure as litigation widens around the exchange's collapse.
- Bankman-Fried is challenging his conviction as speculation and rumors of a pardon follow Trump's decision to absolve Zhao.
FTX case returns to court as prosecutor denies promise of immunity for Bond
Former U.S. Attorney Danielle Sassoon appeared in the Southern District of New York on Thursday to answer questions surrounding the plea deal for Ryan Salame, former co-CEO of FTX Digital Markets. Salame pleaded guilty in 2023 and is serving a sentence of more than seven years in prison.
Sassoon testified that prosecutors indicated they were unlikely to pursue further charges against Salame if he accepted the pleabut she maintained that no promise of immunity had ever been made to her partner Michelle Bond.
His comments came during an evidence hearing focused on Bond's bid to have the charges dismissed. Bond claims prosecutors pressured Salame to plead guilty, which then opened the door to campaign finance allegations against her. Sassoon rejected this claim and said the prosecution had acted appropriately throughout the process.
FTX fallout deepens: Bond disputes charges related to $400,000 in campaign funds
Bond faces several charges, including conspiring to procure illegal campaign contributions and receiving a corporate contribution. Prosecutors link those charges to approximately $400,000 linked to FTX that Salame allegedly ran to support Bond's 2022 congressional campaign. However, the Republican Party member has pleaded not guilty.
Court documents and testimony highlighted several points shaping the dispute:
- No written promise existed guaranteeing that Bond would not be charged;
- Salame's plea did not include a third-party protection clause;
- Prosecutors continued to review evidence implicating Bond after Salame's agreement;
- Bond's legal team says timeline suggests inappropriate pressure tactics;
- Prosecutors argue the charges are based on independent evidence unrelated to Salame's plea.
Salame began serving his sentence in October 2024, after a series of convictions involving key figures at FTX and Alameda Research. Caroline Ellison, former CEO of Alameda, began a two-year sentence in November 2024 after cooperating with authorities. Former FTX executives Nishad Singh and Gary Wang both pleaded guilty and received suspended sentences.
Appeal efforts and pardon rumors keep Bankman-Fried in the spotlight
Bankman-Fried remains the most high-profile figure to challenge his conviction and has been in custody since August 2023, after a judge revoked his bail due to concerns about witness conduct. A jury later convicted him of several counts of fraud, earning him a 25-year sentence.
His lawyers returned to court on November 4 to argue for the conviction to be overturned. Their filings assert that he was never “presumed innocent” during the trial and that his defense was unduly limited in presenting arguments about FTX's solvency at the time of the bankruptcy.
Bankman-Fried contends FTX could have repaid clients in November 2022 and blames his former legal advisors at Sullivan & Cromwell for asset sales he says were made at deep discounts.
Outside the courtroom, speculation grew among members of the crypto community that Bankman-Fried might seek a presidential pardon. Former Binance CEO Changpeng Zhao received a pardon from President Donald Trump in October. Trump defended the decision, saying Zhao's actions did not constitute criminal behavior. The move fueled speculation that another major crypto figure could follow suit.
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