A federal judge in Manhattan has refused to dismiss campaign finance charges against Michelle Bond, wife of former FTX executive Ryan Salame, allowing prosecutors to move forward with a case tied to the collapsed cryptocurrency exchange.
Judge George Daniels said prosecutors never promised Bond immunity as part of Salame’s plea deal, finding “no ambiguity” in the agreement and concluding all parties understood she was not shielded from prosecution.
Allegations center on campaign funding
The case accuses Bond of illegally receiving funds connected to FTX to support her unsuccessful 2022 congressional campaign. Prosecutors say Salame directed $400,000 to her through a consulting arrangement and moved additional money between June and August 2022.
Authorities allege Bond used those funds to finance her campaign while concealing their origin. She is also accused of submitting false statements to both a congressional committee and the Federal Election Commission.
Bond has argued that a 2023 meeting with federal prosecutors indicated she would avoid charges if Salame pleaded guilty. However, Daniels pointed to testimony from her former attorney confirming no such assurance was ever made.
Charges and potential penalties
Bond faces four criminal counts, including conspiracy to cause unlawful contributions, involvement in a straw donor scheme, and accepting excessive and corporate contributions. Each charge carries a potential sentence of up to five years in prison.
Salame, who previously served as co-CEO of FTX’s Bahamian subsidiary, was sentenced in 2024 to seven and a half years after pleading guilty to illegal political donation schemes and operating an unlicensed money-transmitting business.
Lingering impact of FTX collapse on markets
The ruling adds to the ongoing legal fallout from FTX’s 2022 collapse, one of the most significant failures in the digital asset sector. The case is expected to be among the final major criminal proceedings linked to the exchange.
These developments continue to influence how traders view the broader cryptocurrency market, where legal headlines can shift sentiment regardless of underlying technology.
Volatility persists as sentiment weakens
Market conditions have reflected that uncertainty. Total cryptocurrency market capitalization fell 3.3% to $2.55 trillion in May 2026, extending a broader downturn that saw valuations drop 20.4% in the first quarter, erasing roughly $622 billion.
Price action has remained volatile, with Bitcoin briefly dropping below $60,000 before recovering to around $65,648 by mid-June. Despite the rebound, sentiment remains cautious.
Flows into major products have also signaled hesitation. U.S. spot Bitcoin ETFs recorded net outflows of $1.1 billion in May, followed by an additional $319.3 million in outflows during a single week in early June.
Outlook shaped by legal and capital flows
The combination of regulatory uncertainty and fluctuating capital flows suggests continued instability in the near term. Legal proceedings tied to FTX, including the case against Bond, are likely to remain a key signal for potential regulatory actions and could continue to drive short-term price swings across digital assets.
Concerned about FTX fallout and regulation? Explore crypto safety and legal frameworks in our in-depth guide today.
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