Braden John Karony, the former chief of cryptocurrency project SafeMoon, remains at the center of a federal criminal case, even as U.S. authorities begin rethinking how they handle digital asset enforcement.
The U.S. Attorney’s Office for the Eastern District of New York recently reaffirmed its commitment to bringing Karony to trial, distancing itself from a new Justice Department memo that suggested a shift away from using prosecution to shape crypto policy. That guidance, issued earlier this month, called for restraint in pursuing certain crypto-related legal actions. But in Karony’s case, prosecutors say the allegations of financial misconduct are too significant to ignore.
Karony is accused of misusing investor funds through a series of deceptive transactions involving SafeMoon’s native token. Investigators claim that between 2021 and 2022, he played a central role in siphoning off millions of dollars—allegedly under the guise of legitimate token operations.
Although the Justice Department has begun signaling a more cautious approach toward digital asset enforcement, this case appears to be moving full speed ahead. Jury selection is scheduled to begin in early May, despite Karony’s earlier attempt to delay the proceedings. His defense had argued that potential regulatory changes under a possible second Trump administration might undermine the legal basis of the case, especially with respect to whether SafeMoon should be considered a security.
The judge denied that request, and prosecutors appear unfazed by recent developments at the federal level. Karony was first indicted in late 2023, and although the legal landscape around crypto is rapidly evolving—with several dropped cases and enforcement slowdowns—this particular trial seems to be considered more a matter of alleged fraud than regulatory overreach.
The SafeMoon case underscores how murky the legal boundaries remain in the crypto space, particularly when it comes to classifying tokens and applying securities law. Yet despite a changing tide in Washington, Karony’s legal troubles appear far from over.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/whats-happening-with-safemoons-former-ceo-and-the-doj/