Braden John Karony, the former CEO of crypto firm SafeMoon, has requested a judge delay his criminal trial, seemingly hoping that the Trump administration’s approach to digital assets could result in at least one charge being dropped.
In a Feb. 5 filing in the US District Court for the Eastern District of New York (EDNY), Karony asked a federal judge to push jury selection for his trial from March to April 2025, citing “significant changes” proposed by the Securities and Exchange Commission under President Donald Trump.
The SafeMoon CEO’s legal team cited a Trump executive order signed on Jan. 23 exploring potential changes to the country’s regulations on digital assets, as well as a statement from SEC Commissioner Hester Peirce suggesting the commission would consider “retroactive relief” for certain crypto cases.
“Under the current scheduling order in this case, the parties may learn within days or hours of the commencement of trial that DOJ no longer considers digital assets like SafeMoon to be ‘securities’ under the securities laws,” said Karony’s lawyers. “Worse, the parties may learn this during or shortly after a trial, half of whose charges rest on the government’s claim that SafeMoon is such a security.”
US authorities unsealed an indictment against SafeMoon’s Karony, Kyle Nagy, and Thomas Smith in November 2023, charging them with securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy. The trio allegedly “diverted and misappropriated millions of dollars’ worth” of SafeMoon’s SFM token between 2021 and 2022.
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The US Attorney’s Office in EDNY filed an opposition letter to Karony’s request on Feb. 7, saying the motion “points only to aspirational regulatory policies that do not exist.” Even if the Trump administration radically changed the government’s approach to securities laws, according to US Attorney John Durham, the wire fraud conspiracy and money laundering conspiracy charges would likely move forward.
“These additional counts have nothing to do with SafeMoon’s status as a security or the hypothetical policies to which the defendant points,” said Durham. “Because there are no impending regulatory changes that would bear on this criminal case, Karony’s request should be denied.”
It’s unclear when Judge Eric Komitee could decide on Karony’s request. The former SafeMoon CEO was released on a $3 million bond in February 2024 to await trial, while Nagy reportedly fled to Russia after charges were filed. Karony has pleaded not guilty to all charges.
Trump DOJ appointees set to move in after Senate confirmation
As of Feb. 7, the US Attorney’s office for EDNY was headed by Durham, appointed by Trump in an acting capacity following the departure of acting US Attorney Carolyn Pokorny. However, the US president said he planned to nominate Joseph Nocella Jr. to take over in the jurisdiction, making the future of crypto criminal cases uncertain.
In the US Attorney’s office for New York’s Southern District, at least one prosecutor suggested authorities intended to scale back crypto enforcement cases. Danielle Sassoon currently heads the offices until the Senate addresses Trump’s replacement pick , Wall Street insider and former SEC Chair Jay Clayton.
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