"Karony Seeks Trial Delay, Hopes for Trump SEC's Crypto Policy Shift"

SafeMoon's former CEO, Braden John Karony, has requested a delay in his criminal trial, hoping that potential policy changes under the Trump administration's Securities and Exchange Commission (SEC) could lead to the dismissal of at least one charge against him. In a February 5 filing with the U.S. District Court for the Eastern District of New York (EDNY), Karony's legal team asked a federal judge to postpone jury selection for his trial from March to April 2025, citing "significant changes" proposed by the SEC under President Donald Trump.

Karony's lawyers cited a Trump executive order signed on January 23, exploring potential changes to the country's regulations on digital assets, as well as a statement from SEC Commissioner Hester Peirce suggesting the commission would consider "retroactive relief" for certain crypto cases. They argued that the trial's scheduling could be affected by these potential policy shifts, as half of the charges against Karony rest on the government's claim that SafeMoon is a security.

The U.S. Attorney's Office in EDNY filed an opposition letter on February 7, stating that Karony's motion was based on "aspirational regulatory policies that do not exist." Even if the Trump administration radically changed the government's approach to securities laws, the wire fraud conspiracy and money laundering conspiracy charges would likely proceed, according to U.S. Attorney John Durham. Durham argued that Karony's request should be denied, as there are no impending regulatory changes that would bear on the criminal case.

Karony, along with SafeMoon co-founders Kyle Nagy and Thomas Smith, was indicted in November 2023 on charges of securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy. The trio allegedly diverted and misappropriated millions of dollars' worth of SafeMoon's SFM token between 2021 and 2022. Karony was released on a $3 million bond in February 2024 to await trial, while Nagy reportedly fled to Russia after charges were filed. Karony has pleaded not guilty to all charges.

The future of crypto criminal cases in the EDNY remains uncertain, as Trump DOJ appointees are set to move in after Senate confirmation. The U.S. Attorney's office for EDNY was headed by Durham in an acting capacity following the departure of acting