Karony Claims Innocence as Trial Opens in New York
Braden John Karony, the former CEO of cryptocurrency project SafeMoon, has declared his innocence as his criminal trial kicks off in New York. Taking to social media shortly after court proceedings on May 6, Karony posted on X (formerly Twitter) asserting that he “did not commit fraud.”
Karony is one of three former SafeMoon executives facing serious charges. He, along with SafeMoon founder Kyle Nagy and ex-CTO Thomas Smith, was indicted in 2023 for allegedly misappropriating millions of dollars in SFM tokens. Prosecutors claim the trio siphoned investor funds for personal use under the guise of legitimate business activity.
Founder on the Run, Co-Defendant Testifies
In court filings from the Eastern District of New York (EDNY), Karony pointed to Nagy—who reportedly fled to Russia—as the key figure behind the alleged fraud. The implication was clear: Karony sees himself as a scapegoat.
The trial opened with jury selection and testimony from Thomas Smith, who is now cooperating with the prosecution. Smith testified alongside a victim of the alleged scheme, adding emotional weight to the first day in court.
Karony has pleaded not guilty to all charges, which include conspiracy to commit securities fraud, wire fraud, and money laundering. He was released in February on a $3 million bond and remains free as the trial proceeds. The case is expected to conclude by May 26.
A Quieter Crypto Trial Amid Major Industry Cases
Despite its high stakes, Karony’s trial has attracted less attention than previous crypto prosecutions. The 2023 courtroom drama involving FTX founder Sam Bankman-Fried and the sentencing of Binance’s Changpeng Zhao dominated headlines. In contrast, SafeMoon’s case has unfolded with less fanfare.
Legal experts note that most crypto executives remain silent during active litigation, especially on social media. Karony’s public declarations could carry legal risks, as anything he says might be used as evidence.
Political Undertones and Broader Crypto Crackdown
Karony’s legal troubles began in November 2023, around the time Joseph Nocella—an interim U.S. Attorney appointed by Donald Trump—stepped into the role at EDNY. Although EDNY has handled several crypto fraud cases in the past, it’s unclear if Nocella’s appointment and Trump’s crypto-friendly stance will affect proceedings.
Meanwhile, just south in the Southern District of New York, former Celsius CEO Alex Mashinsky is scheduled to be sentenced on May 8. After pleading guilty in late 2024, prosecutors are pushing for a 20-year prison term.
