FTX Prosecutor Testifies in Hearing Involving Deal with Former Executive
Danielle Sassoon, one of the US attorneys behind the prosecution of former FTX CEO Sam “SBF” Bankman-Fried, took the stand at an evidentiary hearing involving a deal with one of the company’s executives. The hearing, which took place in the U.S. District Court for the Southern District of New York, centered around the guilty plea by Ryan Salame, former co-CEO of FTX Digital Markets, that led to his sentencing to more than seven years in prison.
According to a report from Inner City Press, Sassoon testified that her team “likely will not investigate further” into Salame’s conduct if he agreed to plead guilty. This deal led to further investigations into Salame and his then-girlfriend Michelle Bond, resulting in campaign finance charges being filed against Bond. Sassoon emphasized that her goal is not to induce guilty pleas, stating, “I’m not about running scams or getting people to plead guilty.”
Charges Against Michelle Bond and the Aftermath of FTX’s Collapse
Bond, one of the last individuals linked to the criminal cases against former FTX executives, has sought to have her charges dismissed based on allegations that prosecutors “induced” Salame to admit guilt. The charges against Bond include conspiring to make unlawful campaign contributions, making and accepting excessive campaign contributions, making and receiving an unlawful corporate donation, and making and receiving an advertising donation. These allegations are closely related to Salame allegedly ordering $400,000 in FTX-related funds that were used for Bond’s 2022 campaign for a seat in the U.S. House of Representatives.
It has been three years since FTX collapsed, and creditors are still waiting for the industry to rebuild confidence. The collapse of FTX led to a series of criminal charges against its former executives. Salame reported his seven and a half year prison sentence in October 2024, while Caroline Ellison, the former CEO of Alameda Research, pleaded guilty and began serving a two-year prison sentence in November 2024. Two other former executives, Nishad Singh and Gary Wang, also pleaded guilty and received prison sentences.
The Ongoing Saga of Sam Bankman-Fried
For Bankman-Fried, however, the saga continues. The former CEO has been behind bars since August 2023, when a judge revoked his bail over allegations of witness intimidation. He was later tried, found guilty, and sentenced to 25 years in prison in a trial that was closely watched by many in the crypto and blockchain industry. Bankman-Fried’s lawyers have since argued for his conviction and sentence to be overturned, claiming that he was “never presumed innocent” during his trial and that his legal team was not allowed to provide information about FTX’s solvency.
There is also speculation among many crypto users that Bankman-Fried could try to obtain a pardon from US President Donald Trump. In October, the president apologized to former Binance CEO Changpeng Zhao, claiming that “what he did wasn’t even a crime.” As the crypto industry continues to navigate the aftermath of FTX’s collapse, it remains to be seen how these ongoing cases will impact the industry’s efforts to rebuild confidence.
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