SafeMoon CEO's Bail Release Suspended Over Flight Risk Concerns and Potential Danger to Community
Summary:
Following concerns of flight risk and danger to the public, U.S. federal prosecutors have suspended the bail release order of SafeMoon CEO, Braden John Karony. Prosecutors argued that his substantial wealth and overseas connections could enable him to evade justice. Karony, along with SafeMoon creators Kyle Nagy and Thomas Smith, are facing charges of conspiracy to commit securities and wire fraud, and money laundering conspiracy, with potential penalties of up to 45 years imprisonment.
Braden John Karony, the CEO of SafeMoon, has had his bail release order suspended by U.S. federal prosecutors who believe he is a potential risk to the public and could try to escape. This action took place on November 9 when Judge LaShann DeArcy Hall of the New York District upheld the decision to suspend the bail release order from November 8. This came in response to prosecutors disputing a Utah Magistrate judge’s call to release Karony on a bail of $500,000.
Prosecutors in New York took issue with Judge Daphne Oberg’s decision, arguing that Karony's significant wealth and potential to abscond were overlooked. They also stressed that his release could perpetuate harm to the community. Pointing out that Karony could face up to 45 years in jail if found guilty, the prosecutors argued his considerable, yet unclear, financial means and international connections could tempt him to evade justice.
If Judge Oberg's order from November 8 had been applied, Karony would have been allowed to reside in his Miami flat with strict restrictions: no access to cryptocurrency exchanges or wallets, no transactions involving cryptocurrency, and a ban from any promotional activities. However, the prosecutors claimed the Utah court failed to fully consider Karony's wealth when setting his bail at $500,000. They alleged that Karony disclosed scarce details about his financial status and suggested he could tap into a multimillion-dollar asset pool.
They also presented Karony's substantial and growing international connections, noting that he has spent significant time in Europe and the UK with his fiancée, a British citizen and resident. The prosecutors have requested that Karony be moved and kept in detention in New York, a matter Judge Hall will address later.
Karony, along with SafeMoon creators Kyle Nagy and Thomas Smith, the chief technology officer, were charged with a conspiracy to commit securities and wire fraud and money laundering conspiracy. SafeMoon's technology chief, Thomas Smith, was released on a $500,000 bond on November 3 and is working on a plea deal, while it has been reported that Nagy is still at large. Meanwhile, the Securities and Exchange Commission has accused the trio of various fraudulent activities and unauthorized securities sales, alleging they misused funds to artificially inflate SafeMoon's token price.
Related: An expose on SafeMoon's recent controversies, including SEC charges.
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Published At
11/10/2023 4:24:22 AM
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