Key Points
- A US court is considering whether to exclude former FTX executive Ryan Salame’s guilty plea from the campaign finance trial involving his wife, Michelle Bond.
- Former Congressman George Santos was ordered to pay more than $35,000 after regulators found he manipulated prediction markets on Kalshi.
- A US soldier accused of profiting from a Polymarket wager using alleged insider information is seeking to dismiss criminal charges.
- The cases highlight growing legal scrutiny surrounding cryptocurrency, prediction markets and digital asset regulation in the United States.
One of the remaining criminal cases connected to the collapse of cryptocurrency exchange FTX continues to advance in federal court.
Michelle Bond, who faces campaign finance charges linked to her unsuccessful 2022 congressional campaign, has asked the US District Court for the Southern District of New York to exclude evidence related to the guilty plea of her husband, former FTX Digital Markets co-CEO Ryan Salame.
Federal prosecutors allege that Salame helped finance Bond’s congressional campaign using funds connected to FTX.
Bond’s legal team argued that Salame’s guilty plea relates solely to his own conduct and should not be presented as evidence regarding Bond’s knowledge, intent or alleged involvement.
Her attorneys also requested that the court consider evidence relating to the couple’s ongoing divorce and custody proceedings, arguing that Salame’s relationship with Bond made him different from an ordinary campaign donor.
Salame is currently serving a 90-month prison sentence following his 2023 guilty plea related to campaign finance violations and other offenses stemming from the collapse of FTX.
George Santos Ordered to Repay Kalshi Trading Profits
Former New York Congressman George Santos has been ordered by the Commodity Futures Trading Commission (CFTC) to pay more than $35,000 after regulators concluded he manipulated event contracts traded on prediction market platform Kalshi.
According to the CFTC, Santos purchased contracts tied to whether he would attend the 2026 State of the Union address before making public social media statements about his attendance.
Regulators alleged those statements influenced market prices in a manner that benefited Santos’ trading positions.
The settlement requires Santos to pay approximately $17,500 in civil penalties and $17,570 in disgorgement of trading profits.
In addition, he has been prohibited from trading on prediction market platforms for three years.
The order adds to Santos’ existing legal troubles after he was previously convicted of wire fraud and aggravated identity theft.
Soldier Challenges Polymarket Insider Trading Charges
A separate case involving prediction market platform Polymarket could have broader implications for the legal treatment of event contracts in the United States.
US Army soldier Gannon Ken Van Dyke, who faces charges alleging he earned more than $400,000 by trading on Polymarket using nonpublic military information, has asked the federal court to dismiss the indictment.
Prosecutors allege Van Dyke participated in a military operation involving Venezuelan President Nicolás Maduro and later placed bets related to whether Maduro would be removed from power.
Van Dyke’s attorneys argue that portions of the Commodity Exchange Act (CEA) remain legally ambiguous regarding whether prediction market contracts qualify as “swaps,” making it difficult for ordinary individuals to understand whether their conduct falls under federal commodities law.
The defense contends that this lack of legal clarity undermines several criminal charges.
Van Dyke has pleaded not guilty, and the case is expected to proceed toward trial in late 2026 or early 2027.
Crypto and Prediction Markets Face Growing Legal Scrutiny
The week’s legal developments demonstrate increasing regulatory attention on both cryptocurrency markets and blockchain-based prediction platforms.
Authorities continue pursuing cases related to the FTX collapse while also expanding oversight of prediction markets such as Kalshi and Polymarket, particularly where allegations involve market manipulation or insider information.
At the same time, ongoing litigation could shape how event contracts are regulated under US commodities law and influence future enforcement actions involving blockchain-based financial products.
Outlook
This week’s legal developments illustrate the evolving regulatory landscape surrounding cryptocurrencies and prediction markets. As courts continue addressing cases involving FTX, Kalshi and Polymarket, their decisions may help define the legal responsibilities of market participants and clarify how digital asset platforms and event contracts are treated under US law. The outcomes could have lasting implications for compliance, enforcement and investor confidence across the broader crypto industry.
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