FTX legal saga continues: Decoding its effects on FTT
- FTX Digital Markets CEO will reportedly plead guilty in the future.
- Sentiment around FTT declined.
Since the fall of FTX [FTT] and Alameda Research in 2022, the members involved in both firms have been heavily scrutinized for their behavior. However, prosecutors were criticized as well, due to the lack of progress made in the legal proceedings against FTX.
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However, things may take a turn for the better as members of the group may be pleading guilty to their actions.
Legal battle continues
Former FTX Digital Markets co-CEO Ryan Salame was reportedly in discussions with U.S. authorities about a potential guilty plea. According to a Bloomberg report on 8 August, Salame’s lawyers might submit a guilty plea in September.
This move comes ahead of the upcoming criminal trial of ex-FTX CEO Sam Bankman-Fried, which is set to commence on 2 October.
Additionally, Salame had been under investigation by prosecutors for potential breaches of U.S. campaign finance laws. The allegations were linked to his girlfriend Michelle Bond’s congressional campaign, during which they allegedly exceeded federal contribution limits.
FTX Digital Markets, the crypto exchange’s affiliate based in the Bahamas, is where Salame alerted authorities to the purported fraud involving FTX and Bankman-Fried.
The role Salame might play as a witness in either of Bankman-Fried’s trials remains uncertain.
What’s happening with SBF?
Bankman-Fried’s potential prison term is substantial if convicted on the original seven-count indictment, centered on a multibillion-dollar fraud against FTX investors. Additional campaign finance allegations were dropped in July due to the U.S.-Bahamas extradition treaty.
A key limitation arising from the Bahamas treaty is that prosecutors cannot introduce new charges against an extradited individual without securing permission from the foreign government.
While the U.S. government had initially sought the extradition of Bankman-Fried based on a seven-count indictment, they were unable to obtain authorization from the Bahamas to add campaign finance and bribery allegations to his indictment.
State of FTT
Due to the speculation around FTX’s revival, interest in FTT had started to surge. At press time, FTT, the native token for FTX, was trading at $1.18. The price has grown by 0.75% in the last 24 hours.
Realistic or not, here’s FTT’s market cap in BTC’s terms
However, the weighted sentiment around FTT fell, suggesting an uptick in negativity on the social front.
The volume with which FTT was being traded also fell during this period.