John Karony’s Legal Defense Suffers a Setback as Lawyers Withdraw
John Karony, the CEO of bankrupt crypto firm SafeMoon, is facing challenges in his legal defense as his attorneys have decided to withdraw from the case. Karony is currently facing criminal charges in the US, including conspiracy to commit wire fraud, money laundering, and securities fraud.
Karony’s Lawyers File Motion To Withdraw
Karony’s lawyers, Petrillo Klein & Boxer, have filed a motion to withdraw as counsel due to his inability to pay for private representation. They had previously made the same request on January 22, 2024. In response, Judge Eric Komitee stated that non-payment of fees was not sufficient grounds for withdrawal but would likely grant it if new counsel was provided.
Reasons Behind Karony’s Financial Struggles
Petrillo Klein & Boxer revealed that SafeMoon had agreed to cover Karony’s legal fees but failed to fulfill its promise and filed for bankruptcy. The lawyers also mentioned that they had received a limited retainer fee on behalf of Karony, which has been depleted by legal expenses. Furthermore, the government seized proceeds from the sale of Karony’s house in Utah, making it even more difficult for him to pay his legal fees.
Karony’s Lawyers Secure His Bail
In their final act as Karony’s lawyers, Petrillo Klein & Boxer were able to secure his release on a $3 million bond. He has been ordered to live at his parent’s home in Utah and is subject to cyber and electronic monitoring. Prosecutors initially blocked Karony’s release last year but were content with the bail conditions set this time.
Cover image from Dall-E, chart from Tradingview
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