Federal prosecutors said they would continue to continue their file against Braden John Karony, the former CEO of the Crypto Safemoon Society, despite the United States Ministry of Justice, which publishes a note suggesting a policy of abandoning “prosecution regulations” linked to digital assets.
In a file of April 18 before the American district court of the Oriental District of New York, the American lawyer of Edny John Durham declared that his office had examined the memo of the MJ on April 7 published by Vice-Procureur General Todd Blanche and intended to proceed to a trial against Karony.
The old Safemoon CEO faces a values fraud plot[ing] and divert[ing] Millions of dollars for the value of the SFM token of the platform between 2021 and 2022.
Karony, initially charged in October 2023 under the former American lawyer for Edny Breon Peace, argued in February that his criminal trial should be delayed, suggesting that the application of securities laws under the presidency of Donald Trump could see “important changes”. The judge rejected the request and then ordered the selection of the jury for the trial to start on May 5.
However, Karony’s legal team has made its complaints concerning the laws on securities under Trump who potentially underwent “policy changes” before the Commission for Securities and Exchange (SEC) rejects business and abandoned surveys in many cryptographic companies faced with allegations of violation of securities. The Memo of Blanche of April 7 also suggested that the DoJ under Trump would order the courts not to continue many cases of application of cryptography.
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“”[T]The parties can learn in the days or hours following the start of the trial that the DoJ no longer considers digital assets as Safemoon as “ titles ” under securities laws, “said the Karony legal team on February 5.” Worse, the parties can learn this for a short time after a trial, half of the accusations are based on the claim of the government. »»
Crypto sweeten by dry and doj under Trump
Since he was appointed interim president of the dry by Trump in January, Mark Uyeda has led the agency to abandon the cases against Ripple Labs, Coinbase, Kraken and others. The SEC also launched a crypto working group led by Commissioner Hester Peirce to explore a regulatory framework for digital assets, and published a service note saying that the same were not titles.
The agency’s actions suggest a more permissive approach to digital assets than that under former president Gary Gensler.
“By ordering the SEC to abdicate his critical investor protection mission, Trump unnecessarily puts our financial system in danger,” said former dry manager John Reed Stark in an editorial in the New York Times on April 18 with the Conference of the University of Duke Lee Reiners. “Whether he does it to keep his promise of cryptocurrency or in a zeal to take (or perhaps even both), it is a disturbing development not only for investors and banks, but for all of us.”
It is not clear to intervene and intervene and go to Karony’s stop, as the Doj did in the corruption case with the mayor of New York, Eric Adams, is not clear. At the time of publication, the former SAFEMOON CEO had to be tried in May and has been free of a deposit of $ 3 million since February 2024. He pleaded not guilty of all the accusations.
Review: The U-turn of the dry on the crypto leaves key questions unanswered
