| SafeMoon
Karony Got $3
Million Bail
so Inner City
Press Bid to
Unseal Now
Griffin
Opposed
by
Matthew Russell Lee, Patreon Book
Substack
EDNY COURTHOUSE,
Dec 13 – On November 2, 2023
SafeMoon's trio were indicted
in the U.S. District Court for
the Eastern District of New
York. Inner City Press covered
it.
Prosecutors
charged Braden John Karony,
Kyle Nagy, and Thomas Smith
with conspiracy to commit
securities fraud, conspiracy
to commit wire fraud and money
laundering conspiracy for
their roles in defrauding
investors in a decentralized
finance digital asset called
“SafeMoon” Earlier
today, Karony was arrested in
Provo, Utah...
On November
3, Smith was arraigned, bond
document on Patreon here
....
On November 8,
EDNY prosecutors wrote
"seeking the detention of the
defendant Braden John Karony."
Full memo on Patreon here.
But Karony was
ordered free on bond, by
Magistrate Daphne A. Oberg
(whose previous freeing of
January 6 defendant John Earle
Sullivan Inner City Press
previously covered here).
The EDNY prosecutors have
written to the assigned
District Judge to appeal /
seek a stay, 6-page letter on
Patreon here.
On Sunday
November 12 Karony's lawyers
wrote in that "without more,
every U.S. citizen facing
criminal charges in the
digital asset space would be
detained through trial, in
effect establishing an
unrebuttable crypto
presumption." Full letter on
Patreon here.
On November 13,
Inner City Press live tweeted
the bail appeal in which
Karony was ordered detained
and to be brought to EDNY, thread
On November 22,
Karony's lawyers filed -
Letter on Patreon here.
On November 27,
the prosecutors replied that
transport will take the time
it takes, and there is no
basis for release. Letter on
Patreon here.
Late on November
29 the EDNY US Attorney's
Office filed its discovery
list, on Patreon here.
In the run
up to an EDNY appearance by
co-defendant Smith, the US
Attorney's Office on December
5 disputed Karony's lawyers'
characterization of their
position. Email on Patreon here.
Inner City Press
called in to District Judge
Komitee's proceeding, but
heard only lawyers on hot mic.
The next day, it was docketed
that the hearing - no public
access, despite it being by
phone? - was before a
Magistrate Judge: "Minute
Entry for proceedings held
before Magistrate Judge James
R. Cho: Government opposed the
bail package as stated on the
record." Was this an open
proceeding? Judge Komitee has
previously unsealed a
sentencing video after Inner
City Press' filing. But on
this, there may be no
remedy...
On December 18,
co-defendant Thomas Smith had
a new lawyer file a notice of
appearance in the EDNY case -
a Federal Defender, publicly
paid. On Patreon here.
Back on December
8 Judge Komitee signed an
order to move Karony from
Utah's Metro & Oxbow Jail
to the EDNY "forthwith," order
on Patreon here.
And weeks later,
Karony was appeared in the BOP
database as in MDC Brooklyn
for Christmas...
On December 28,
co-defendant Thomas Smith's
Federal Defender wrote in
seeking permission, with
prosecutors' consent, for him
to travel to Evans, Georgia -
for a training. Filing on
Patreon here.
In February,
Karony was given a new free
lawyer and a $3 million bond
package - but the co-signers
are confidential, unlike what
Inner City Press unsealed as
to SBF in SDNY: "Minute Entry
for proceedings held before
Magistrate Judge Taryn A.
Merkl: Bond Hearing as to
Braden John Karony held on
2/9/2024. Bond set at 3
Million. Defendant released.
Defendant advised of bond
conditions set by the Court
and signed the bond. 4
Surety/ies sworn, advised of
bond obligations by the Court
and signed the bond (2 present
in Court, 2 by telephone). 2
Additional Surety/ies to
co-sign bond by 12/16/2024.
Sureties names and addresses
should be redacted on the bond
that is available to the
public." Why?
Inner City Press
on February 17 filed a letter
to unseal the co-signers - on
February 22 Judge Komitee to
his credit had it docketed.
But nothing happened (?)
Jump cut to
December 13 when Karony sought
to exclude expert testimony:
"the government disclosed its
intent to offer the expert
testimony of John Griffin on
October 11, 2024. Karony Ltr.,
ECF No. 78 at 1. The
disclosure explained that the
government’s proposed expert
witness would “testify
generally about crypto
markets, blockchain
technology, decentralized
finance, digital-asset
tracing, stablecoins, and
other related matters.” Id.,
Exh. 1 at 1. Enumerated
paragraphs then set forth a
series of general topics, such
as testimony “about” or
“regarding”: “the function of
digital-asset exchanges,” “how
digitalasset transactions are
conducted and how those
transactions can be traced on
the blockchain,” “common terms
and jargon used among
digital-asset investors,”
“liquidity pools,” and
“decentralized finance.” Id.
at 1-2. As Karony explained to
the Court on October 28, the
government’s disclosure did
not contain any “statement” of
expert “opinion,” much less a
“complete statement.” Letter
on Patreon here.
Inner City Press
will follow the case(s)
***
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