Acting US Attorney for the Eastern District of New York (EDNY) John Durham has exited as President Donald Trump’s selection takes charge of the office.
In a May 5 announcement, the US Attorney’s Office for EDNY stated that Joseph Nocella will act as interim US Attorney for the region for 120 days or until a Senate-confirmed appointee takes the position. Nocella’s selection occurred as jury selection commenced in the criminal trial of Braden John Karony, the former CEO of crypto firm SafeMoon.
The influence of Nocella, appointed by US President Donald Trump this month, on the prosecutors’ case against Karony, who is facing charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy, remains uncertain. Nocella expressed his desire to assist in prosecuting “narcotics traffickers, gang affiliates, terrorists, human traffickers, and other offenders.”
The ex-SafeMoon CEO requested the court in February to consider delaying the trial’s commencement due to “significant alterations” proposed by Trump related to US securities laws, which could potentially influence his criminal case.
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Although not as renowned for criminal cases involving prominent figures in the crypto sphere, the Eastern District of New York has been responsible for managing cases against individuals associated with digital assets, including a Securities and Exchange Commission (SEC) complaint against Hex founder Richard Heart and various fraudsters.
Its adjacent district, the Southern District of New York, will supervise the sentencing of former Celsius CEO Alex Mashinsky on May 8. Jay Clayton, a Wall Street veteran and the former chair of the SEC, became the interim US Attorney for that district in April.
Criminal trial to commence on May 6
Karony of SafeMoon, alongside Kyle Nagy and Thomas Smith, was indicted in November 2023 for “diverted and misappropriated millions of dollars’ worth” of the platform’s SFM token within the years 2021 and 2022. Karony has pled not guilty to all allegations and has been free on a $3 million bond since February 2024.
In a May 5 filing, Karony consented to proceed with jury selection for his trial under US Magistrate Judge James Cho. District Judge Eric Komitee is anticipated to oversee the trial beginning on May 6.
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