Shocking Turn in FTX Case: SDNY Prosecutor Suggests Resolution for Michelle Bond

In a significant development within the ongoing legal saga surrounding the collapse of FTX, the interim US Attorney for the Southern District of New York (SDNY) has intervened in a key criminal case. This move signals a potential shift towards resolving one of the remaining FTX cases without the need for a full trial, offering a glimpse into how the final threads of the exchange’s downfall might be settled.

SDNY Prosecutor Seeks Resolution in FTX Case

Jay Clayton, the former SEC chair now serving as interim US Attorney for the SDNY prosecutor‘s office, has formally requested an exclusion under the Speedy Trial Act in the criminal proceedings against Michelle Bond. Bond is notably the wife of former FTX Digital Markets co-CEO, Ryan Salame.

Filed on Thursday in the US District Court for SDNY, Clayton’s request seeks a seven-day delay. The purpose? To allow prosecutors and defense lawyers to engage in discussions aimed at reaching a “potential resolution” for the matter outside of a courtroom trial. This follows a similar, albeit shorter, request from Bond’s legal team.

Understanding the Michelle Bond Case

Michelle Bond was indicted in August 2024 on campaign finance charges. These charges stem from her unsuccessful bid for a seat in the US House of Representatives back in 2022. Her defense has argued that at least one charge should be dismissed, citing a purported verbal agreement with prosecutors not to pursue an investigation into Bond as part of her husband Ryan Salame‘s plea deal.

Judge George Daniels approved the requested delay, cancelling a conference previously set for July 15 and scheduling oral arguments for a motion on July 22. The government’s filing emphasized that an exclusion would “serve the ends of justice” by facilitating discovery review, considering potential motions, and discussing a resolution to avoid a crypto trial.

The Connection to Ryan Salame and FTX

The case against Michelle Bond is closely tied to the broader FTX fallout through her husband, Ryan Salame. Salame received a sentence of over seven years in prison in May 2024 after reaching a plea agreement with prosecutors. He was the only individual indicted alongside Sam Bankman-Fried who did not testify at the high-profile criminal trial.

Salame had initially attempted to withdraw his plea, also claiming that prosecutors had verbally agreed not to pursue charges against Bond if he pleaded guilty. However, this motion was later withdrawn, and Salame began serving his sentence in October.

This development in Bond’s case highlights its status as one of the final criminal proceedings directly connected to the FTX exchange’s collapse in late 2022. Many key figures have already faced judgment:

• Sam Bankman-Fried is serving time.
• Ryan Salame is serving time.
• Former Alameda Research CEO Caroline Ellison is serving time.
• Former FTX executives Nishad Singh and Gary Wang, who pleaded guilty, were sentenced to time served.

The intervention by the interim SDNY prosecutor in this specific FTX case is one of the few instances Jay Clayton has taken a direct role in a crypto-related criminal matter since assuming his interim position in April.

Potential Impact on the Crypto Trial Landscape

While not a major crypto fraud trial like SBF’s, the Michelle Bond case is significant as a lingering piece of the FTX puzzle. A resolution without a full crypto trial could bring closure to this specific aspect of the sprawling legal aftermath sooner than expected. It also raises questions about the nature of the potential resolution being discussed and its implications, particularly concerning the campaign finance charges and the alleged verbal agreement linked to Ryan Salame‘s plea.

Summary

The request by the interim SDNY prosecutor to pause proceedings and discuss a potential resolution for Michelle Bond‘s case marks a notable moment in the winding down of FTX-related litigation. By seeking to avoid a full crypto trial, the prosecution and defense aim to find a path forward outside of court. This development, centered around Ryan Salame‘s wife and her campaign finance charges, underscores the complex and interconnected legal challenges stemming from the FTX collapse, potentially bringing one of the final chapters closer to a close.