Braden John Karony, the former CEO of crypto company SafeMoon, pleaded not guilty in an out-of-court statement as his criminal trial began in New York.
In a post on May 6, after the first hearing, Karony affirmed that he "did not commit fraud" and rejected the allegations reported by the media. He, along with SafeMoon founder Kyle Nagy and former CTO Thomas Smith, was charged in 2023 for allegedly misappropriating millions of dollars from the platform's SFM Token.
According to the Eastern District of New York (EDNY) court, Karony implied that Kyle Nagy – who is reportedly on the run in Russia after being indicted – was behind the fraudulent actions. On the first day of the trial, after jury selection, Smith appeared as a witness for the prosecution along with a SafeMoon victim.
The trial is expected to last until May 26 but has attracted less attention compared to other major cases like Sam Bankman-Fried (FTX) or Changpeng Zhao (Binance). Karony has denied charges of securities fraud conspiracy, wire fraud, and money laundering, and has been out on bail since February 2024 with a $3 million bond.
Unlike many crypto leaders who have faced legal troubles, Karony has been openly speaking to the media – although these statements could potentially be used as evidence in court.
The case was first filed in November 2023, coinciding with Joseph Nocella – appointed by Trump – taking on the role of acting prosecutor at EDNY. Although this district court has tried many crypto-related cases, it remains unclear whether political factors are influencing this case, especially as Trump increasingly supports the cryptocurrency industry.
Meanwhile, at the Southern District of New York, Alex Mashinsky – former CEO of Celsius – will be sentenced on May 8. He pleaded guilty to two criminal charges in December 2024, and prosecutors are recommending a 20-year prison sentence.
The article Former SafeMoon CEO Pleads Innocence, Blames Founder first appeared on CoinMoi.
