SafeMoon CEO Braden John Karony Asks a Judge to Postpone His Upcoming Criminal Trial, Citing Possible Regulatory Changes Under Donald Trump's Administration

In a Feb. 5 filing with the U.S. District Court for the Eastern District of New York (EDNY), Karony's legal team argued that the Securities and Exchange Commission (SEC)

SafeMoon (SFM) CEO Braden John Karony has requested a postponement of his upcoming criminal trial, citing potential changes in regulatory policies under the Donald Trump administration that could impact the charges against him.

In a Feb. 5 filing with the U.S. District Court for the Eastern District of New York (EDNY), Karony’s legal team highlighted the recent executive order signed by Trump on Jan. 23, which proposed a review of crypto regulations.

They also pointed to statements made by SEC Commissioner Hester Peirce, suggesting the possibility of retroactive relief for some crypto-related cases.

Karony’s lawyers specifically requested to move jury selection from March 2025 to April 2025, arguing that upcoming SEC policy changes could influence whether SafeMoon’s SFM token is classified as a security.

“Under the current scheduling order in this case, the parties may learn within days or hours of the commencement of trial that DOJ no longer considers digital assets like SafeMoon to be ‘securities’ under the securities laws,” Karony’s lawyers wrote in the filing.

His defense team further explained that changes in classification could occur before, during, or after the trial, impacting how charges are prosecuted.

“This would obviously have a profound impact on the remaining charges in this case, which hinge on the classification of digital assets like SafeMoon,” they added.

Federal prosecutors indicted Karony, Kyle Nagy, and Thomas Smith in November 2023 on multiple charges, including conspiracy to commit wire fraud and money laundering.

Authorities claim that the SafeMoon executives misappropriated millions of dollars from SafeMoon’s SFM token between 2021 and 2022. Karony pleaded not guilty, while Nagy reportedly fled to Russia.

On Feb. 7, the U.S. Attorney’s Office for the EDNY filed a response, opposing Karony’s motion to delay his trial.

The prosecution argued that Karony's request for a trial delay is based on hypothetical regulatory policies and that the remaining charges against him are not affected by the classification of SafeMoon’s token as a security.

“Even if the SEC were to change its approach to digital assets like SafeMoon, which it has not, these additional counts have nothing to do with SafeMoon’s status as a security or the hypothetical policies to which the defendant points,” John Durham, a federal prosecutor, wrote in a court filing.

The prosecution further stated that no imminent regulatory changes would impact the criminal case.

“There is no pending administrative proceeding, no imminent agency action, and no regulatory change that would moot these charges,” the filing reads.

As of Feb. 7, the U.S. Attorney’s Office for the EDNY is being led by John Durham, who was appointed in an acting capacity. Trump has nominated Joseph Nocella Jr. to take over, pending Senate confirmation.

In the Southern District of New York, Danielle Sassoon is currently overseeing cases.

Reports have indicated that some prosecutors in the DOJ may reduce crypto-related enforcement while waiting for Trump’s appointee, former SEC Chair Jay Clayton, to be confirmed.

The SafeMoon CEO was released on a $3 million bond in February 2024, awaiting trial.