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What happened in crypto legal news this week
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- DeepHorus
This week, three separate legal actions involving cryptocurrency and prediction markets made headlines, highlighting the continuing fallout from the FTX collapse and new scrutiny of political betting. The cases involve Michelle Bond, a former congressional candidate and wife of ex-FTX executive Ryan Salame; George Santos, a former congressman; and Gannon Ken Van Dyke, a US soldier. Each case deals with different aspects of crypto-related legal issues, from campaign finance to market manipulation.
In a Friday filing with the US District Court for the Southern District of New York, Bond's legal team asked the court to preclude evidence related to her husband Ryan Salame's guilty plea. Salame, the former co-CEO of FTX Digital Markets, is currently serving a 90-month sentence after pleading guilty in 2023 to campaign finance and conspiracy charges. Bond faces charges alleging that her unsuccessful 2022 congressional run in New York was partially funded by contributions from FTX facilitated by Salame.
Bond's lawyers argued that Salame's plea materials lack any probative value as to Bond's guilt, knowledge, or intent, and that the risk of unfair prejudice substantially outweighs any minimal probative value. They also requested the court include information about Bond's contemporaneous divorce and custody proceedings, noting that Salame was not an ordinary 'individual' donor. The criminal case is one of the last involving individuals tied to the defunct exchange following its 2022 collapse, with Salame, former FTX CEO Sam Bankman-Fried, and former Alameda Research CEO Caroline Ellison all sentenced to prison.
Separately, the US Commodity Futures Trading Commission ordered former New York Representative George Santos to pay a $17,500 civil monetary penalty and $17,570 in disgorgement from profits earned over bets placed on Kalshi, a prediction markets platform. Santos traded on event contracts betting on his appearance at the 2026 State of the Union address, and the CFTC found that his social media posts contained material misrepresentations and omissions that moved contract prices favorably to his positions. Santos is barred from trading on prediction market platforms for three years as part of the order.
Santos was previously sentenced to 87 months in prison for wire fraud and aggravated identity theft in 2025, though his sentence was commuted by US President Donald Trump after serving only three months. In a separate case, US soldier Gannon Ken Van Dyke faces charges for allegedly making more than $400,000 on Polymarket event contracts using nonpublic information tied to a military operation involving the removal of Venezuelan President Nicolás Maduro in January. Van Dyke is seeking to dismiss the charges, though details of his motion have not been fully disclosed.
These cases demonstrate regulators' willingness to pursue misconduct in digital asset and prediction markets, even as high-profile figures face consequences. Bond's trial is expected to proceed, with her motion to exclude Salame's plea materials pending. Santos will comply with the CFTC order, and Van Dyke's dismissal motion will be heard in court. The outcomes could set precedents for how courts treat evidence and insider-trading-like behavior in these emerging financial sectors.
