Braden John Karony, former CEO of SafeMoon, has requested a delay in his criminal trial, arguing that potential regulatory shifts under the Trump administration could impact the charges against him.
Karony Seeks Trial Postponement Amid Policy Uncertainty
In a Feb. 5 court filing, Karony asked the U.S. District Court for the Eastern District of New York (EDNY) to move jury selection from March to April 2025. His legal team cited an executive order signed by President Donald Trump on Jan. 23, which explores changes to cryptocurrency regulations. They also pointed to a statement from SEC Commissioner Hester Peirce, suggesting the possibility of “retroactive relief” for some crypto-related cases.
Karony’s attorneys argued that the trial could begin just as the Department of Justice (DOJ) reclassifies digital assets like SafeMoon, potentially affecting key securities fraud charges. They warned that a policy shift during or after the trial could complicate legal proceedings.
DOJ Opposes Delay, Citing Lack of Regulatory Changes
Federal prosecutors strongly opposed Karony’s request. In a Feb. 7 letter, U.S. Attorney John Durham dismissed the argument, stating that Karony’s motion relied on “aspirational regulatory policies that do not exist.” He emphasized that even if securities laws changed, charges of wire fraud conspiracy and money laundering conspiracy would still stand.
“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, urging the judge to deny the request.
SafeMoon Case and Uncertain Legal Landscape
Karony, along with Kyle Nagy and Thomas Smith, was indicted in November 2023 for securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. Prosecutors accuse them of misappropriating millions of dollars in SafeMoon (SFM) tokens between 2021 and 2022. While Karony remains free on a $3 million bond, Nagy has reportedly fled to Russia.
The timing of Karony’s request coincides with shifts in the DOJ. John Durham, a Trump appointee, currently leads the EDNY office, but President Trump has nominated Joseph Nocella Jr. as a permanent replacement. In the Southern District of New York, authorities have signaled a potential reduction in crypto enforcement, though the extent of such changes remains uncertain.
It remains unclear when Judge Eric Komitee will rule on Karony’s motion, but the case highlights the ongoing legal uncertainty surrounding digital assets and U.S. securities laws.
