US Attorney Seeks Delay in Michelle Bond Case for Potential Resolution

In a significant development, the interim US Attorney for the Southern District of New York, Jay Clayton, has suggested that prosecutors and defense lawyers may explore a potential resolution in the criminal case involving Michelle Bond, the wife of former FTX Digital Markets co-CEO Ryan Salame. This intervention comes as the defense has argued for the dismissal of at least one charge, citing a verbal agreement with prosecutors not to pursue an investigation into Bond as part of Salame’s plea deal.

In a filing on Thursday, Clayton requested the judge overseeing Bond’s case to exclude seven days under the Speedy Trial Act. This exclusion would allow the two sides to engage in discussions regarding a potential resolution of the matter without the need for a trial. The filing followed a similar request for a three-day delay by Bond’s lawyers. Judge George Daniels signed an order the same day, cancelling a previously scheduled conference on July 15 and ordering oral arguments for a motion to be heard on July 22.

Clayton’s letter highlighted the importance of allowing the parties to produce and review discovery, consider potential motion practice, and engage in discussions regarding a potential resolution. This move suggests a willingness to explore a resolution without proceeding to trial, which could potentially expedite the legal process and avoid the lengthy and costly proceedings associated with a trial.

Bond was indicted on campaign finance charges in August 2024 related to her failed run for a seat in the US House of Representatives in 2022. Her lawyers have argued in motions that at least one of the charges should be dismissed, claiming that there was a verbal agreement in place from prosecutors not to pursue an investigation into Bond as part of Salame’s plea deal.

This intervention by Clayton marks one of the few times the former SEC chair has intervened in his capacity as interim head of the Southern District of New York in a crypto-related criminal case since being sworn in in April. He will be allowed to serve as the interim US attorney until Aug. 20 without Senate confirmation or a temporary extension from the court.

Bond’s husband, Salame, was sentenced to more than seven years in prison in May 2024 following a plea deal with prosecutors. The former FTX Digital Markets co-CEO was the only individual named in the same indictment as Sam Bankman-Fried who did not testify at the former FTX CEO’s high-profile criminal trial in New York. Salame also initially attempted to nullify his plea deal, claiming that prosecutors said they would not pursue their case against Bond if he pleaded guilty. However, his lawyers later dropped the motion, and Salame reported to prison to serve his sentence in October.

Bond’s case remains one of the last criminal proceedings connected to the FTX cryptocurrency exchange since its collapse in 2022. Bankman-Fried and Salame are both serving time in prison, as is former Alameda Research CEO Caroline Ellison. Former FTX executives Nishad Singh and Gary Wang, who also pleaded guilty to charges, were each sentenced to time served.

This development underscores the complexity of the case and the efforts being made to reach a mutually acceptable outcome. The prosecution's intervention suggests a willingness to explore a resolution without proceeding to trial, which could potentially expedite the legal process and avoid the lengthy and costly proceedings associated with a trial. This move highlights the ongoing legal battles and the efforts to resolve the remaining cases connected to the FTX collapse.