Braden John Karony, the previous CEO of cryptocurrency company SafeMoon, made an out-of-court declaration asserting his innocence as his criminal trial commenced in New York.
In a May 6 post on X, after court proceedings had presumably concluded for the day, Karony stated he was not guilty and “did not engage in fraud” in connection to media reports regarding his trial. The former CEO, alongside SafeMoon originator Kyle Nagy and former chief technology officer Thomas Smith, faced charges in 2023 for allegedly “diverting and misappropriating millions of dollars’ worth” of the platform’s SFM token.
As reported by the US District Court for the Eastern District of New York (EDNY) on May 6, Karony suggested that Nagy, who reportedly absconded to Russia following the filing of charges, was accountable for some of the alleged deceit at SafeMoon. On the trial’s initial day, after jury selection, Smith reportedly testified as a witness for the prosecution, accompanied by a SafeMoon victim.
The trial, anticipated to continue until May 26, has arguably garnered less media focus and analysis compared to other crypto-related cases, such as the 2023 trial of former FTX CEO Sam Bankman-Fried and the sentencing of former Binance CEO Changpeng Zhao. Karony entered a plea of not guilty to charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy, and has been released on a $3 million bond since February 2024.
Related: What do crypto users desire to see happen to Alex Mashinsky?
Numerous prominent individuals from the crypto sector who faced legal troubles refrained from publicly commenting on social media until their cases concluded, likely upon counsel’s advice. Such assertions may be utilized in court.
Trump’s interim appointee takes charge without Senate confirmation
Karony’s case, originally filed in November 2023, arose as Donald Trump appointee Joseph Nocella took on the role of interim US Attorney for the district court. The EDNY has previously dealt with cases involving claims of crypto fraud, but it remains uncertain whether political factors will play a role going forward, considering Trump’s ties to the crypto industry.
In the adjacent US District Court for the Southern District of New York, Alex Mashinsky is set to be sentenced on May 8. The former CEO of Celsius admitted guilt to two felony counts in December 2024. Prosecutors have requested that the judge impose a 20-year sentence.
Magazine: Bitcoiner Adam Back discusses Blockstream conspiracy theories and the Satoshi question
