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The jury found all charges against the former CEO of SafeMoon to be valid.
Source: Cointelegraph Original: "The jury found all charges against the former CEO of SafeMoon to be established."
A New York jury found Braden John Karony, the former CEO of cryptocurrency company SafeMoon, guilty of three felony charges after less than a day of deliberation.
According to court reports on May 21, in the United States District Court for the Eastern District of New York, the jury found Karony guilty of conspiracy to defraud the United States, money laundering, and wire fraud. Prosecutors and defense attorneys presented their respective cases during the trial, which lasted about two weeks and began with jury selection on May 5.
Karony, former Chief Technology Officer Thomas Smith, and platform founder Kyle Nagy were accused in 2023 of "misappropriating and abusing millions of dollars worth" of SafeMoon (SFM) tokens. Smith testified against Karony in court, while it was reported that Nagy had fled to Russia and was still at large as of May 21.
The criminal trial involving executives of cryptocurrency companies is seen by many as a barometer for how interim U.S. Attorney Joseph Nocella handles cases involving digital assets and fraud in the region. Nocella was appointed by Trump and took office on May 5.
As of the time of publication, it is unclear when Karony will return to court to accept the verdict. He may face several years in prison due to his role in the SafeMoon fraud case. Smith reportedly reached an agreement with the prosecution and pleaded guilty, which may result in a lighter sentence.
The trial of Karony took place after the sentencing hearing of former Celsius CEO Alex Mashinsky in the Southern District of New York, where the judge sentenced Mashinsky to 12 years in prison following his guilty plea. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison after being found guilty in 2023 without pleading guilty and undergoing a trial.
Related articles: NYU professor: Bank lobbying groups are "panicking" over profit-generating stablecoins.