SafeMoon CEO's Bail Release Order Put on Hold by US Federal Prosecutors

According to Cointelegraph, United States federal prosecutors have put SafeMoon CEO Braden John Karony's bail release order on hold, citing flight risk and his release being a possible danger to the community. On November 9, New York District Judge LaShann DeArcy Hall stayed a November 8 bail release order after prosecutors challenged a Utah Magistrate judge's decision to let Karony out on a $500,000 bail. Prosecutors argued that the release order was given without consideration of Karony's substantial financial means and ability to flee, and that his release posed a continued danger to the community. If convicted, Karony faces a statutory maximum of 45 years' imprisonment. Prosecutors claimed that the Utah court overlooked Karony's assets when setting his bail at $500,000. They alleged that the SafeMoon chief provided almost no information concerning his finances and claimed he can access assets totaling millions of dollars. Karony also has substantial and ever-expanding overseas ties and has spent months outside the U.S. in Europe and the United Kingdom with his fiancée, a British citizen and resident, prosecutors alleged. Prosecutors also asked the court to transport Karony to New York and have him detained there, which Judge Hall will consider at a later date. Karony was arrested on October 31 at Salt Lake City International Airport and was charged alongside SafeMoon creator Kyle Nagy and chief technology officer Thomas Smith with conspiracy to commit securities and wire fraud and money laundering conspiracy. The Securities and Exchange Commission also charged the trio with various fraud charges and unregistered securities sales and alleged they misappropriated funds to purchase SafeMoon (SFM) tokens to prop up its price. SafeMoon technology chief Thomas Smith was released on a $500,000 bond on November 3 and is pursuing a plea deal, while the Department of Justice said Nagy remains at large.