SafeMoon CEO Seeks Dismissal of Charges Amid DOJ Directive Shift
Braden John Karony, CEO of SafeMoon, is pushing for the dismissal of charges filed against him and his firm, using a recent shift in U.S. Department of Justice (DOJ) policy as the key argument.
In an April 9 letter to New York federal court judge Eric Komitee, Karony’s attorney, Nicholas Smith, argued that the DOJ’s April 7 memo, which disbanded its crypto unit, should play a role in the court’s decision to dismiss the case. The memo, issued by U.S. Deputy Attorney General Todd Blanche, outlined the DOJ’s new stance on crypto-related cases.
Key DOJ Memo Shifts Approach on Crypto Enforcement
The memo from Blanche confirmed that the DOJ would no longer pursue enforcement actions or litigation that attempt to impose regulatory frameworks on digital assets. In a significant shift, the DOJ also made it clear that it would not charge violations of securities and commodities laws when wire fraud charges are more applicable and do not require determining whether a digital asset is a security or commodity.
Blanche emphasized, “The Department of Justice is not a digital assets regulator,” further noting that the agency would steer clear of any charges that would involve determining the classification of a digital asset.
Exemption in DOJ’s New Directive
Karony’s legal counsel pointed out that while there is an exemption in the DOJ’s new policy for cases where parties wish to defend that a crypto asset is a security, Karony does not have such an interest in this case. Therefore, the attorney believes this directive should play a critical role in the dismissal of the charges against SafeMoon.
Background on SafeMoon Case
In November 2023, the DOJ and the Securities and Exchange Commission (SEC) filed charges against Karony, SafeMoon creator Kyle Nagy, and Chief Technology Officer Thomas Smith. The charges included securities violations, wire fraud, and money laundering, alleging that the SafeMoon executives misappropriated $200 million worth of assets from the project and misused investor funds.
Karony’s Efforts to Clear SafeMoon’s Name
Karony’s defense is centered on the recent shifts in DOJ policy and the growing perception that the legal framework around digital assets is still developing. His legal team hopes that the new directive will be a key factor in securing a dismissal, positioning SafeMoon as a firm in compliance with evolving regulatory standards.
This case marks a key moment in the ongoing legal landscape for cryptocurrency firms and their regulatory challenges.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
