“SafeMoon CEO Denied Bail Amidst Flight Risk Concerns”

“SafeMoon CEO Denied Bail Amidst Flight Risk Concerns”

SafeMoon CEO Braden John Karony faces a denial of bail as federal prosecutors argue that he presents a potential flight risk and could pose a danger to the community.

Karony’s Bail Release Order On Hold

The decision to deny Karony’s bail request was rendered by New York District Judge LaShann DeArcy Hall on Nov. 9, intervening after prosecutors contested a Utah Magistrate judge’s decision to grant Karony a $500,000 bail on Nov. 8.

Prosecutors questioned Judge Daphne Oberg’s decision, arguing that the court did not consider Karony’s considerable wealth and financial means to leave the country. Moreover, they expressed concerns that he might be a danger to the community if released.

They asserted that facing a potential 45-year imprisonment sentence, Karony might leverage his personal assets and foreign connections to flee the country if granted bail.

Initial Bail Order Overlooked Assets

Prosecutors claimed the Utah court did not account for Karony’s assets when setting the $500,000 bail, contending that he has not been transparent about his financial condition. They argued that Karony could access funds in the range of millions of dollars.

Additionally, they highlighted Karony’s “substantial and ever-expanding” overseas ties, emphasizing his prolonged stays in Europe and the United Kingdom with his British citizen and resident fiancee.

The initial release order, if upheld, would have permitted Karony to reside in his Miami apartment but restricted access to crypto exchanges or wallets. It also prohibited him from holding or transacting crypto and engaging in promotional activities. Prosecutors argued these conditions were insufficient given Karony’s financial capabilities and global connections.

Next Steps and Legal Proceedings

Prosecutors requested the court for Karony’s transfer to and detention in New York, a matter Judge Hall will consider later.

Karony, along with SafeMoon creator Kyle Nagy and CTO Thomas Smith, faces charges of securities and wire fraud and conspiracy to commit money laundering. The SEC additionally charged them with fraud, unregistered securities sales, and misappropriating funds to buy SafeMoon token (SFM) to inflate its price.

Karony was arrested on October 31 at Salt Lake City International Airport and has remained in custody. Smith was released on a $500,000 bond on Nov. 3 and is pursuing a plea deal. Kyle Nagy remains at large, according to the Department of Justice.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.