Prosecutors Challenge SafeMoon CEO's Bail Release
United States federal prosecutors have successfully delayed the bail release of SafeMoon CEO Braden John Karony, citing flight risk and potential danger to the community. The decision to challenge the release order was made after a Utah Magistrate judge allowed Karony out on a $500,000 bail.
Flight Risk and Community Danger Concerns
Prosecutors argued that Karony poses a flight risk due to his alleged access to substantial financial means and foreign ties. They emphasized the potential for leveraging these resources to avoid a maximum prison sentence of 45 years if convicted, stating that Karony's release would be a "continued danger to the community."
Lack of Financial Transparency
Prosecutors claimed that the Utah court overlooked Karony's financial assets when setting the $500,000 bail, alleging that he provided "almost no information concerning his finances." They contended that Karony can access assets totaling millions of dollars.
Overseas Ties and Travel History
The prosecution highlighted Karony's "substantial and ever-expanding" overseas ties and his history of spending months outside the U.S., particularly in Europe and the United Kingdom with his fiancée, a British citizen and resident. This aspect further raised concerns about his potential flight.
Pending Considerations and Charges
The court will consider transporting Karony to New York and having him detained there. Karony, along with SafeMoon creator Kyle Nagy and Chief Technology Officer Thomas Smith, faces charges of conspiracy to commit securities and wire fraud, as well as money laundering conspiracy. The Securities and Exchange Commission has also charged them with various fraud charges and unregistered securities sales.
