Federal Prosecutors Block SafeMoon CEO’s Release

The parole release order of SafeMoon CEO Braden John Karony has been stayed by federal prosecutors in the United States because his release could pose a potential “danger to the community” and escape risk.

A bail release order issued on November 8 was stayed by New York District Judge LaShann DeArcy Hall on November 9.

This stay was in response to a petition filed by prosecutors challenging the decision of a Utah Magistrate judge to release Karony on bail for $500,000.

Prosecutors challenged the decision of New York judge Daphne Oberg, asserting that the defendant’s release order was issued “without regard for his considerable financial resources and ability to evade apprehension.” Furthermore, they stated that his release continued to threaten the community.

Prosecutors wrote, “The defendant faces a statutory maximum of 45 years in prison if convicted.”

The order issued by Judge Oberg on November 8 would have allowed Karony to remain in his Miami condominium while prohibiting him from possessing or transacting cryptocurrencies, accessing exchanges or wallets, and engaging in promotional activities.

However, prosecutors asserted that the Utah court failed to consider Karony’s assets when determining his bond amount of $500,000.

They stated that the CEO of SafeMoon possessed “virtually no information regarding his finances” and that he had access to “assets worth millions of dollars.”

Prosecutors allege that Karony has “substantial and ever-expanding” overseas ties and has spent months with his British citizen and resident fiancée outside the United States, in Europe and the United Kingdom.

Additionally, prosecutors requested that Karony be transported to New York and detained there; this motion will be reviewed by Judge Hall later.

Karony, SafeMoon creator Kyle Nagy, and chief technology officer Thomas Smith were arrested at Salt Lake City International Airport on October 31 and charged with conspiracy to commit securities and wire fraud and money laundering conspiracy.

Additionally, the Securities and Exchange Commission levied allegations of fraud and unregistered securities sales against the three individuals, alleging that they misappropriated funds to purchase SafeMoon (SFM) tokens to inflate the token’s price.

Thomas Smith, the chief technology officer of SafeMooon, was released on a $500,000 surety bond on November 3 and is currently engaged in negotiations for a plea bargain; Nagy, according to the Department of Justice, is still at large.