US Attorney Confirms Case Against Former SafeMoon CEO Will Proceed Despite DOJ Memo
On Friday, April 18, 2025, US Attorney John Durham said that federal prosecutors would continue to pursue their case against Braden John Karony, the former CEO of the cryptocurrency firm SafeMoon. This decision comes despite a recent memo from the US Justice Department suggesting a shift away from “regulation by prosecution” regarding digital assets.
In a filing submitted to the US District Court for the Eastern District of New York, Durham confirmed that his office had reviewed the April 7 memo issued by Deputy Attorney General Todd Blanche. The memo indicated that under the current administration, federal prosecutors might abandon certain cases related to cryptocurrency enforcement. However, Durham expressed his intent to proceed with the trial against Karony, who faces multiple charges, including conspiracy to commit securities fraud, wire fraud, and money laundering.
The allegations against Karony stem from claims that he misappropriated millions of dollars’ worth of SafeMoon’s SFM token between 2021 and 2022. He was originally indicted in October 2023 under the previous US Attorney for the Eastern District of New York, Breon Peace. In February, Karony requested a delay in his trial, suggesting that significant changes in securities law enforcement could occur under the Trump administration. The judge denied this motion, and jury selection for the trial is scheduled to begin on May 5, 2025.
Karony’s legal team raised concerns that the DOJ’s stance on digital assets could shift dramatically, potentially affecting the trial’s outcome. They indicated that the prosecution’s claims regarding SafeMoon being classified as a security might become questionable just before or during the trial. This concern arose following the SEC’s recent dismissal of cases against several cryptocurrency firms, including Ripple Labs and Coinbase, as well as Blanche’s memo suggesting a more lenient approach to crypto regulation.
Mark Uyeda, appointed as acting SEC chair by Trump, has led efforts to reassess the regulatory framework for digital assets. His actions include forming a crypto task force aimed at exploring new regulatory guidelines and stating that certain memecoins would not be classified as securities.
Critics, including former SEC official John Reed Stark, have raised alarms over these developments, arguing that the current administration’s approach could jeopardize investor protection and the overall stability of the financial system.
As of now, Karony remains free on a $3 million bond and has pleaded not guilty to all charges.
Please contact BlockTribune for access to a copy of this filing.
