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SafeMoon CEO Seeks Trial Delay Citing Trump SEC’s Crypto Policy Shift
YEREVAN (CoinChapter.com) — SafeMoon CEO Braden John Karony has asked a judge to postpone his upcoming criminal trial, citing possible regulatory changes under Donald Trump’s administration. In a Feb. 5 filing with the U.S. District Court for the Eastern District of New York (EDNY), Karony’s legal team argued that the Securities and Exchange Commission (SEC) may revise its stance on digital assets, potentially affecting the charges against him.
His lawyers requested to move jury selection from March 2025 to April 2025, claiming that upcoming SEC policy changes could influence whether SafeMoon’s SFM token is classified as a security.
Trump’s Crypto Policies May Impact SafeMoon Case
Karony’s defense pointed to a Jan. 23 executive order signed by Trump, which proposed a review of crypto regulations. They also referenced a statement from SEC Commissioner Hester Peirce, who suggested the possibility of retroactive relief for some crypto-related cases.
The filing warned that any regulatory shift could affect the trial’s outcome:
“Under the current scheduling order in this case, the parties may learn within days or hours of the commencement of trial that DOJ no longer considers digital assets like SafeMoon to be ‘securities’ under the securities laws,”
Karony’s lawyers wrote.
SafeMoon Trial Filing. Source: EDNY
His defense team argued that changes in classification could occur before, during, or after the trial, impacting how charges are prosecuted.
SafeMoon CEO Faces Fraud and Money Laundering Charges
Federal prosecutors indicted Karony, Kyle Nagy, and Thomas Smith in November 2023 on multiple charges, including:
Securities fraud conspiracy
Wire fraud conspiracy
Money laundering conspiracy
Authorities claim the SafeMoon executives misappropriated millions of dollars from SafeMoon’s SFM token between 2021 and 2022. Karony pleaded not guilty, while Nagy reportedly fled to Russia.
Prosecutors Reject Karony’s Request for Trial Delay
On Feb. 7, the U.S. Attorney’s Office for the EDNY opposed Karony’s motion, arguing that the request relied on hypothetical regulatory policies. John Durham, a federal prosecutor, stated that even if the SEC changed its approach, it would not affect the wire fraud and money laundering charges.
“These additional counts have nothing to do with SafeMoon’s status as a security or the hypothetical policies to which the defendant points,”
Durham wrote in a court filing.
The prosecution argued that no imminent regulatory changes would impact the criminal case.
Trump DOJ Appointees May Influence Crypto Cases
As of Feb. 7, the U.S. Attorney’s Office for the EDNY was led by John Durham, who was appointed in an acting capacity. Trump has nominated Joseph Nocella Jr. to take over, pending Senate confirmation.
In the Southern District of New York, Danielle Sassoon is currently overseeing cases. Reports indicate that some prosecutors in the DOJ may reduce crypto-related enforcement while waiting for Trump’s appointee, former SEC Chair Jay Clayton, to be confirmed.
Trump Nominates Jay Clayton. Source: X Uncertainty Over SafeMoon Case Continues
It remains unclear when Judge Eric Komitee will decide on Karony’s request. The SafeMoon CEO was released on a $3 million bond in February 2024, awaiting trial.
With ongoing legal proceedings, the case highlights how Trump’s crypto policies, potential SEC rule changes, and shifting DOJ leadership could shape the future of crypto-related prosecutions in the United States.
The post SafeMoon CEO Seeks Trial Delay Citing Trump SEC’s Crypto Policy Shift first appeared on Coinchapter.
The post SafeMoon CEO Seeks Trial Delay Citing Trump SEC’s Crypto Policy Shift appeared first on Coinchapter.
His lawyers requested to move jury selection from March 2025 to April 2025, claiming that upcoming SEC policy changes could influence whether SafeMoon’s SFM token is classified as a security.
Trump’s Crypto Policies May Impact SafeMoon Case
Karony’s defense pointed to a Jan. 23 executive order signed by Trump, which proposed a review of crypto regulations. They also referenced a statement from SEC Commissioner Hester Peirce, who suggested the possibility of retroactive relief for some crypto-related cases.
The filing warned that any regulatory shift could affect the trial’s outcome:
“Under the current scheduling order in this case, the parties may learn within days or hours of the commencement of trial that DOJ no longer considers digital assets like SafeMoon to be ‘securities’ under the securities laws,”
Karony’s lawyers wrote.
SafeMoon Trial Filing. Source: EDNY
His defense team argued that changes in classification could occur before, during, or after the trial, impacting how charges are prosecuted.
SafeMoon CEO Faces Fraud and Money Laundering Charges
Federal prosecutors indicted Karony, Kyle Nagy, and Thomas Smith in November 2023 on multiple charges, including:
Securities fraud conspiracy
Wire fraud conspiracy
Money laundering conspiracy
Authorities claim the SafeMoon executives misappropriated millions of dollars from SafeMoon’s SFM token between 2021 and 2022. Karony pleaded not guilty, while Nagy reportedly fled to Russia.
Prosecutors Reject Karony’s Request for Trial Delay
On Feb. 7, the U.S. Attorney’s Office for the EDNY opposed Karony’s motion, arguing that the request relied on hypothetical regulatory policies. John Durham, a federal prosecutor, stated that even if the SEC changed its approach, it would not affect the wire fraud and money laundering charges.
“These additional counts have nothing to do with SafeMoon’s status as a security or the hypothetical policies to which the defendant points,”
Durham wrote in a court filing.
The prosecution argued that no imminent regulatory changes would impact the criminal case.
Trump DOJ Appointees May Influence Crypto Cases
As of Feb. 7, the U.S. Attorney’s Office for the EDNY was led by John Durham, who was appointed in an acting capacity. Trump has nominated Joseph Nocella Jr. to take over, pending Senate confirmation.
In the Southern District of New York, Danielle Sassoon is currently overseeing cases. Reports indicate that some prosecutors in the DOJ may reduce crypto-related enforcement while waiting for Trump’s appointee, former SEC Chair Jay Clayton, to be confirmed.
Trump Nominates Jay Clayton. Source: X Uncertainty Over SafeMoon Case Continues
It remains unclear when Judge Eric Komitee will decide on Karony’s request. The SafeMoon CEO was released on a $3 million bond in February 2024, awaiting trial.
With ongoing legal proceedings, the case highlights how Trump’s crypto policies, potential SEC rule changes, and shifting DOJ leadership could shape the future of crypto-related prosecutions in the United States.
The post SafeMoon CEO Seeks Trial Delay Citing Trump SEC’s Crypto Policy Shift first appeared on Coinchapter.
The post SafeMoon CEO Seeks Trial Delay Citing Trump SEC’s Crypto Policy Shift appeared first on Coinchapter.
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