Ex-Prosecutor’s Explosive Testimony Ignites Legal Firestorm as FTX Saga Intensifies

Former prosecutor drops bombshell testimony—sending shockwaves through the cryptocurrency legal landscape.

The Unraveling Continues

Witness statements clash as the FTX collapse investigation deepens—regulatory scrutiny intensifies with each new revelation. Legal teams scramble while former executives face mounting pressure.

Courtroom Tensions Spike

Contradictory accounts emerge during cross-examination—prosecutors zero in on financial discrepancies. The testimony exposes fresh cracks in the defense strategy, complicating an already complex legal battle.

Industry-Wide Implications

Every revelation sends ripples across crypto markets—investors watch nervously as regulatory frameworks face their ultimate stress test. Another reminder that in crypto, the fine print matters more than the hype.

Legal experts brace for more surprises as the case reveals just how thin the line between innovation and oversight really is—and how quickly billion-dollar empires can become billion-dollar liabilities.

In brief

• Sassoon denies offering immunity to Bond as scrutiny grows over Salame’s plea deal and pressure claims in the FTX investigation.
• Bond contests charges tied to $400K in campaign funds allegedly linked to FTX, arguing prosecutors acted unfairly after Salame’s plea.
• Key former FTX and Alameda executives serve sentences, adding pressure as legal disputes widen around the exchange’s collapse.
• Bankman-Fried challenges his conviction amid speculation he may seek a pardon following Trump’s decision to clear 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 address questions surrounding the plea deal of 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 action against Salame if he accepted the plea, but she maintained that no promise of immunity was ever given to his former partner, Michelle Bond.

Her comments came during an evidentiary hearing centered on Bond’s effort to have the charges dismissed. Bond claims prosecutors pressured Salame into a guilty plea, which later opened the door to campaign-finance allegations against her. Sassoon rejected that claim and said the prosecution acted appropriately throughout the process.

FTX Fallout Deepens : Bond Challenges Charges Linked to $400K Campaign Funds

Bond faces multiple counts, including conspiracy to cause unlawful campaign contributions and receiving a corporate contribution. Prosecutors LINK the charges to roughly $400,000 tied to FTX that was allegedly directed by Salame to support Bond’s 2022 congressional campaign. However, the Republican party member has pleaded not guilty.

Court documents and testimony outlined several points shaping the dispute :

• No written promise existed guaranteeing that Bond would not be charged ;
• Salame’s plea did not include terms shielding third parties ;
• Prosecutors continued reviewing evidence involving Bond after Salame’s agreement ;
• Bond’s legal team claims the timeline suggests improper pressure tactics ;
• Prosecutors argue the charges stand on independent evidence unrelated to Salame’s plea.

Salame began serving his sentence in October 2024, following a string of convictions involving key figures from FTX and Alameda Research. Caroline Ellison, former Alameda CEO, 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 sentences of time served.

Appeal Efforts and Pardon Rumors Keep Spotlight on Bankman-Fried

Bankman-Fried remains the most prominent figure still challenging his conviction and has been in custody since August 2023, after a judge revoked bail over concerns about witness conduct. A jury later convicted him on multiple fraud charges, resulting in a 25-year sentence.

His lawyers returned to court on Nov. 4 to argue that the conviction should be overturned. Their filings claim he was “never presumed innocent” during the trial and that his defense was improperly restricted from presenting arguments about FTX’s solvency at the time of bankruptcy. 

Bankman-Fried maintains that FTX could have repaid customers by November 2022 and faults his former legal advisers at Sullivan & Cromwell for asset sales he says occurred at steep discounts.

Outside the courtroom, speculation has grown among members of the crypto community about whether Bankman-Fried may 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 conduct. The move has sparked speculation that another major crypto figure might follow suit.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.