Braden John Karony, the former CEO of SafeMoon, is set to face trial on serious fraud charges starting May 5, 2025. This case unfolds at a time when U.S. authorities are rethinking how they regulate and prosecute cryptocurrency activities.
Charges Against Karony
Karony stands accused of:
- Securities fraud conspiracy
- Wire fraud conspiracy
- Money laundering conspiracy
Prosecutors claim that between 2021 and 2022, Karony misused millions of dollars worth of SafeMoon’s SFM tokens. They allege he diverted funds for personal use, including luxury purchases.
DOJ’s Changing Approach to Crypto Enforcement
In April 2025, the U.S. Department of Justice (DOJ) issued a memo signaling a shift away from aggressively prosecuting digital asset cases. The memo suggests some tokens, including SafeMoon’s, might no longer qualify as securities under the law.
This policy change reflects a broader trend under the current administration to ease enforcement on cryptocurrencies. The Securities and Exchange Commission (SEC) has also dropped several major cases and clarified that certain memecoins do not meet the criteria of securities.
Karony’s defense team asked for a trial delay, hoping the DOJ’s new stance would lead to dismissal or pause of the charges. The judge, however, denied this request, setting jury selection for early May.
Prosecutors Push Forward
Despite the DOJ’s new guidance, prosecutors in the Eastern District of New York, led by U.S. Attorney John Durham, are moving forward. They believe the evidence against Karony justifies a full trial.
Related Legal Developments
- SafeMoon’s Chief Technology Officer, Thomas Smith, pleaded guilty in February 2025 to fraud charges connected to a $200 million scheme involving SafeMoon tokens.
- Authorities accuse SafeMoon executives of falsely claiming the liquidity of SFM tokens was locked, while secretly accessing funds for personal gain.
- SafeMoon’s token once reached a market value between $5.7 billion and $8 billion before a sharp drop in April 2021 after these claims were exposed.
What This Means for Crypto
This trial will test the impact of the DOJ’s new, softer approach to crypto cases. It highlights the tension between evolving regulations and ongoing enforcement.
For investors and the crypto industry, the outcome could influence how future cases are handled and how tokens are classified legally.
Summary Table
| Aspect | Details |
| Defendant | Braden John Karony, former SafeMoon CEO |
| Charges | Securities fraud, wire fraud, money laundering |
| Allegations | Misuse of millions in SafeMoon tokens (2021-22) |
| Trial Date | Jury selection begins May 5, 2025 |
| Bond | $3 million, released since Feb 2024 |
| DOJ Policy Shift | April 2025 memo signals easing crypto prosecutions |
| Defense Request | Trial delay denied |
| Related Guilty Plea | CTO Thomas Smith pleaded guilty Feb 2025 |
| SEC Actions | Dropped cases; memecoins not securities |
Key Takeaways
- The SafeMoon CEO’s trial will challenge the DOJ’s new crypto enforcement approach.
- Prosecutors are determined to pursue fraud cases despite regulatory easing.
- The case will influence future crypto legal standards and investor confidence.
FAQs
Q: Why is the SafeMoon CEO on trial?
- A: He faces charges for allegedly misappropriating millions in SafeMoon tokens through fraud.
Q: What is the DOJ’s new policy on crypto?
- A: The DOJ now advises against aggressive prosecutions of digital assets, signaling a softer stance.
Q: Will the trial be delayed due to this policy?
- A: No, the judge denied the defense’s request to delay the trial.
Q: What happened to SafeMoon’s CTO?
- A: Thomas Smith pleaded guilty to fraud charges related to SafeMoon in February 2025.
Q: How will this trial affect the crypto industry?
- A: It could set important legal precedents on crypto fraud and token classification.
This trial marks a pivotal moment for crypto regulation. It raises questions about how justice and innovation will coexist as the industry grows. Will the courts follow the DOJ’s new leniency, or will they hold leaders accountable under existing laws? The answer will shape crypto’s future.
