SafeMoon CEO’s Bail Release Order Put on Hold
United States federal prosecutors have managed to put SafeMoon CEO Braden John Karony’s bail release order on hold, citing flight risk and his release being a possible “danger to the community.
On Nov. 9, New York District Judge LaShann DeArcy Hall stayed a Nov. 8 bail release order after prosecutors challenged a Utah Magistrate judge’s decision to let Karony out on a $500,000 bail.
Prosecutors made the challenge to Judge Daphne Oberg’s decision in New York, saying the release order was given “without consideration of the defendant’s substantial financial means and ability to flee” and added his release posed a “continued danger to the community.”
“If convicted, the defendant faces a statutory maximum of 45 years’ imprisonment,” prosecutors wrote. “These facts all provide powerful incentives for the defendant to leverage his substantial (and opaque) financial assets and foreign ties to avoid that outcome.”
Karony’s Assets and Overseas Ties
Judge Oberg’s Nov. 8 order would have permitted Karony to stay at his Miami apartment and barred him from accessing crypto exchanges or wallets, holding or transacting crypto and banned him from engaging in promotional activities.
Prosecutors however claimed the Utah court overlooked Karony’s assets when setting his bail at $500,000. They alleged the SafeMoon chief provided “almost no information concerning his finances” and claimed he can access “assets totaling millions of dollars.”
Karony also has “substantial and ever-expanding” overseas ties and has spent months outside the U.S. in Europe and the United Kingdom with his fiancée, a British citizen and resident, prosecutors alleged.
Legal Charges Against Karony
Karony was arrested on Oct. 31 at Salt Lake City International Airport and was charged alongside SafeMoon creator Kyle Nagy and chief technology officer Thomas Smith with conspiracy to commit securities and wire fraud and money laundering conspiracy.
The Securities and Exchange Commission also charged the trio with various fraud charges and unregistered securities sales and alleged they misappropriated funds to purchase SafeMoon (SFM) tokens to prop up its price.
Hot Take: SafeMoon CEO’s Legal Troubles Continue
The legal troubles for SafeMoon CEO Braden John Karony continue as federal prosecutors have successfully put his bail release order on hold due to concerns over flight risk and potential danger to the community. The prosecution has raised issues regarding Karony’s substantial financial means, overseas ties, and lack of transparency about his finances, making him a possible flight risk if released on bail. The case remains ongoing as legal proceedings continue against Karony, SafeMoon creator Kyle Nagy, and chief technology officer Thomas Smith.
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