SafeMoon Former CEO Seeks Trial Delay Amid Potential Regulatory Shakeup

Braden John Karony, former CEO of crypto firm SafeMoon, is making a strategic legal move, requesting a judge to delay his upcoming criminal trial. His legal team appears to be banking on the possibility that the Trump administration’s evolving stance on digital assets may lead to at least one of the charges against him being dismissed.

A Legal Strategy

On February 5, Karony’s attorneys filed a motion in the US District Court for the Eastern District of New York (EDNY) seeking to push jury selection from March to April 2025. They cited President Donald Trump’s January 23 executive order, which calls for reviewing regulations on digital assets, and comments from SEC Commissioner Hester Peirce hinting at “retroactive relief” for certain crypto cases.

The defense argued that changes to how digital assets are classified could impact the validity of charges claiming SafeMoon was treated as a security. “The parties may learn within days or even hours before trial, or worse—during trial—that the DOJ no longer considers SafeMoon a security,” Karony’s lawyers stated.

Prosecutors Push Back on Defense Claims

The US Attorney’s Office in EDNY filed a firm opposition to Karony’s motion on February 7, calling his claims speculative. US Attorney John Durham argued that the defense was relying on “aspirational regulatory policies that do not exist.”

Even if sweeping regulatory changes occur, Durham asserted, the charges for wire fraud conspiracy and money laundering conspiracy would likely remain unaffected. “These additional counts have nothing to do with SafeMoon’s status as a security or hypothetical regulatory policies,” Durham said, urging the judge to reject Karony’s request.

Karony, along with SafeMoon associates Kyle Nagy and Thomas Smith, faces multiple criminal charges, including securities fraud and wire fraud conspiracy. Authorities allege the trio misappropriated millions of dollars’ worth of SafeMoon tokens between 2021 and 2022.

While Karony was released on a $3 million bond in early 2024, Nagy reportedly fled to Russia after the charges were made public. Karony has pleaded not guilty to all accusations.

The timing of the trial now hinges on Judge Eric Komitee’s decision. As regulatory uncertainty looms, Trump’s appointment of new officials, including former SEC Chair Jay Clayton as a nominee for a key position, further clouds the future of crypto-related enforcement in the United States.