Ex-SafeMoon CEO denies fraud in trial with $3 million bail

Braden John Karony, former CEO of SafeMoon (CRYPTO:SFM), declared his innocence as his criminal trial began in New York on May 6.

Karony posted on social media after the first day of court proceedings, stating he “did not commit fraud” amid charges related to the misappropriation of millions in SafeMoon’s SFM tokens.

The trial also involves SafeMoon founder Kyle Nagy and former CTO Thomas Smith, all charged in 2023 with securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy.

According to the US District Court for the Eastern District of New York, Karony suggested that Nagy, who reportedly fled to Russia after charges were filed, bore responsibility for some of the alleged fraudulent activity.

During the first day, Smith appeared as a prosecution witness alongside a victim of the SafeMoon platform.

Karony has been out on a $3 million bond since February 2024 and pleaded not guilty to all charges.

The trial is expected to continue until May 26 but has attracted less media attention compared to other high-profile crypto cases such as those involving Sam Bankman-Fried and Changpeng Zhao.

Legal experts note that Karony’s public statements on social media are unusual, as defendants often refrain from commenting during ongoing trials to avoid jeopardising their defense.

Karony’s case commenced shortly after Joseph Nocella, a Donald Trump appointee, took over as interim US Attorney for the Eastern District of New York, a court with a history of handling crypto fraud cases.

It remains uncertain whether political factors will influence the proceedings given Trump’s connections to the crypto sector.

In a related case in the Southern District of New York, former Celsius CEO Alex Mashinsky is scheduled for sentencing on May 8 after pleading guilty to two felony charges.

Prosecutors have requested a 20-year prison term for Mashinsky.

At the time of reporting, the SafeMoon (SFM) price was $0.00001673.