SafeMoon CEO Released on Bail, Legal Team Withdraws
Braden John Karony, the CEO of bankrupt crypto project SafeMoon, has been released on bail. However, his legal team has decided to no longer represent him. Karony was arrested in November 2023 on charges of securities fraud, money laundering, and conspiracy to commit wire fraud. The project’s creator, Kyle Nagy, remains at large.
Lawyers Claim SafeMoon Failed to Cover Legal Fees
Karony’s lawyers at Petrillo Klein & Boxer sought to withdraw from representing him due to a lack of funds. They mentioned that SafeMoon initially promised to cover his legal fees but failed to provide the necessary funds. The law firm also stated that the government seized proceeds from the sale of Karony’s Utah home, which were intended to cover legal fees.
Legal Proceedings and Conditions of Bail
In a bail hearing on February 9, 2024, Karony was granted bail with a $3 million bond. He is allowed to stay at his parents’ home in Utah but must comply with various conditions, including cyber monitoring and a prohibition on engaging in crypto promotional activities.
SafeMoon Faces Further Setbacks
The SEC has accused SafeMoon and its top executives of orchestrating a fraudulent unregistered offering of crypto securities. This resulted in significant market losses and misuse of over $200 million in project funds for personal gain. Additionally, an unidentified individual recently drained over $11 million in liquidity from multiple pools linked to SafeMoon, leading to speculation about its connection to the ongoing bankruptcy proceedings.
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