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SafeMoon CEO John Karony’s bail postponed while courts assess level of flight risk

According to court documents dated November 9, a judge partially granted US prosecutors’ request to block the bail release of John Karony, CEO of crypto platform SafeMoon.

A filing from New York prosecutors indicates that a Utah magistrate judge, Daphne A. Oberg, issued an order for Karony’s release on November 8. Karony’s bond included $500,000 surety plus conditions of house arrest and restrictions on financial activities.

However, prosecutors in the Eastern District of New York said the Utah judge failed to consider Karony’s finances or her ability to flee. Specifically, they said Karony had millions of dollars in assets the court was unaware of, including a home in Utah currently being sold for $1.5 million, various expensive items and cash in an anonymous company.

The November 9 filing states that Karony’s release order will be suspended (paused) until the case is resolved. This filing is signed by District Judge LaShann DeArcy Hall of the Eastern District of New York, where Karony’s criminal case is taking place.

The order does not revoke Karony’s bail in its entirety, require Karony to remain in custody pending trial, or require Karony to be transferred to the Eastern District of New York.

The government added that Karony had close ties outside the United States and said there were no conditions to ensure he continued to appear in court.

Prosecutors noted that Karony had “shown a desire to remain abroad” since working on SafeMoon. Specifically, they said Karony made twelve trips to Europe in just over two years. Most recently, they said, Karony spent five months outside the United States before returning on October 27. He planned to stay in the United States for only a few weeks.

Prosecutors filed charges this month

The U.S. Attorney’s Office for the Eastern District of New York alleged on Nov. 1 that Karony and other SafeMoon executives committed securities fraud, conspiracy to commit wire fraud and money laundering conspiracy. ‘money.

The agency said Karony and other executives manipulated SafeMoon (SFM) prices and embezzled millions of dollars stuck in SafeMoon’s liquidity pools. Executives spent these funds on luxury vehicles, real estate and personal investments.

The U.S. Securities and Exchange Commission, which filed parallel charges, suggested the executives earmarked a total of $200 million for their scheme.

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