What Triggered the Latest Hearing in the FTX Criminal Cases?
Danielle Sassoon, one of the US prosecutors who helped secure the conviction of former FTX CEO Sam Bankman-Fried, took the stand on Thursday in an evidentiary hearing tied to a plea agreement involving former FTX Digital Markets co-CEO Ryan Salame. The hearing, held in the US District Court for the Southern District of New York, centered on allegations that prosecutors improperly influenced Salame’s guilty plea, which ultimately fed into the criminal case against his former partner, Michelle Bond. Salame was sentenced to more than seven years in prison after pleading guilty to campaign finance violations and operating an unlicensed money-transmitting business. His plea became a focal point for Bond’s legal team, which has argued that prosecutors “induced” Salame into cooperating in a manner that unfairly exposed her to criminal charges. Sassoon rejected that framing. According to reporting from Inner City Press, she testified that her team would “probably not continue to investigate [Salame’s] conduct” if he pleaded guilty, but emphasized that the government did not mislead him about potential outcomes. “I’m not in the business of gotcha or tricking people into pleading guilty,” she said.
Why Is Michelle Bond Challenging the Charges Against Her?
Michelle Bond, a former congressional candidate and a longtime partner of Salame, pleaded not guilty to multiple charges earlier this year. These include conspiracy to cause unlawful campaign contributions, receiving excessive contributions and facilitating corporate donations in violation of federal law. Prosecutors say Bond’s 2022 congressional campaign was funded in part through approximately 400,000 dollars directed by Salame using funds tied to FTX. Bond’s legal team claims she was unfairly swept into the broader FTX criminal dragnet and is seeking to have the charges dismissed. If her case concludes, it would likely mark the final chapter in the criminal proceedings tied to FTX’s collapse in November 2022, as nearly every major executive connected to the company has already been sentenced or resolved their charges. The hearing is expected to determine whether the government acted appropriately in leveraging Salame’s cooperation and whether Bond’s prosecution stands independently of his plea.
Where Do the Other Former FTX Executives Stand?
More than three years after the collapse of FTX, the list of executives who have faced criminal consequences is nearly complete. The outcomes vary widely:
- •Ryan Salame: Serving a seven-and-a-half-year sentence since October 2024.
- •Caroline Ellison: Former Alameda Research CEO, pleaded guilty and began a two-year sentence in November 2024.
- •Nishad Singh and Gary Wang: Both pleaded guilty and received sentences of time served.
- •Michelle Bond: Pleaded not guilty and is seeking dismissal of her charges.
For Sam Bankman-Fried, however, the legal process continues. SBF has been jailed since August 2023, when his bail was revoked amid allegations of witness tampering. He was later convicted on multiple fraud charges and sentenced to 25 years in prison. His legal team returned to court on November 4 to appeal both the conviction and the sentence. They argued that he was “never presumed innocent” during trial and that the court blocked attempts to introduce evidence supporting claims that FTX remained solvent at the time of its collapse. Judges have not yet ruled on the appeal.
Investor Takeaway
Is SBF Seeking a Presidential Pardon?
Speculation is growing among crypto users that Bankman-Fried may attempt to seek a pardon from US President Donald Trump. The rumor gained momentum after Trump issued a high-profile pardon to former Binance CEO Changpeng Zhao in October, saying “what he did is not even a crime.” Legal analysts note that a presidential pardon would be unusual in a case involving billions in investor losses, political donations and one of the largest fraud prosecutions in recent financial history. Still, Trump’s previous actions and public statements have kept speculation alive.
What Comes Next for the FTX Legal Aftermath?
For the first time since late 2022, most of the criminal accountability tied to FTX has been resolved. The remaining questions revolve around:
- •Bond’s motion to dismiss: Whether the court agrees that prosecutors acted improperly.
- •SBF’s appeal: Whether the conviction or sentence will be reduced or overturned.
- •Civil actions: Ongoing disputes over creditor compensation and estate recovery.
With Salame serving time, Ellison sentenced, Singh and Wang resolved and SBF appealing from prison, Bond’s case stands as one of the final unresolved prosecutions tied to the collapse of the exchange. The outcome of this hearing will likely determine how quickly the legal system can close out the criminal side of the FTX collapse and shift fully toward the long-term process of payouts, restructuring and creditor recovery.