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SafeMoon CEO Braden John Karony has been denied bail due to the arguments put forth by federal prosecutors that he is a potential flight risk and a possible danger to the community.
Karony’s Bail Release Order On Hold
The decision to deny Karony’s bail request was made by New York District Judge LaShann DeArcy Hall on Nov. 9, who intervened 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, asserting that the court was not accounting for Karony’s considerable wealth and financial means to leave the country. Furthermore, they argued that Karony could pose a danger to the community if he were released.
They claimed that since Karony is facing a potential 45-year imprisonment sentence if convicted, he might choose to flee the country if given bail by leveraging his personal assets and foreign connections.
Initial Bail Order Overlooked Assets
Prosecutors claimed that the Utah court did not account for Karony’s assets when setting the $500,000 bail, contending that he has not been at all transparent about his financial condition. They claimed 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 fiancee, who is a British citizen and resident.
The initial release order, if upheld, would have allowed Karony to reside in his Miami apartment but restricted him from accessing crypto exchanges or wallets. It also prohibited him from holding or transacting crypto and engaging in promotional activities. However, prosecutors argued that these conditions were insufficient given Karony’s financial capabilities and global connections.
Next Steps and Legal Proceedings
Prosecutors have requested the court for Karony’s transfer to and detention in New York, a matter that Judge Hall will consider later.
Karony and his other SafeMoon accomplices, i.e., creator Kyle Nagy and CTO Thomas Smith, have been charged with securities and wire fraud and conspiracy to commit money laundering.
The SEC also 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 since then. Smith was released on a $500,000 bond on Nov. 3 and is pursuing a plea deal. However, 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.