Braden John Karony, the former CEO of crypto firm SafeMoon, made an out-of-court statement claiming innocence as his criminal trial began in New York.

In a May 6 X post after court proceedings had likely ended for the day, Karony said he was innocent and “did not commit fraud” in response to media coverage of his trial. The former CEO, as well as SafeMoon creator Kyle Nagy and former chief technology officer Thomas Smith, were charged in 2023 for having allegedly “diverted and misappropriated millions of dollars’ worth” of the platform’s SFM token.

According to reporting from the US District Court for the Eastern District of New York (EDNY) on May 6, Karony implied that Nagy, who reportedly fled to Russia after authorities filed charges, was responsible for some of the alleged fraud at SafeMoon. On the first day of the trial, after jury selection, Smith reportedly appeared as a witness for the prosecution with a SafeMoon victim.

The trial, expected to run until May 26, has arguably received less media attention and scrutiny than other crypto cases, such as the 2023 trial of former FTX CEO Sam Bankman-Fried and the sentencing of former Binance CEO Changpeng Zhao. Karony pleaded not guilty to charges of securities fraud conspiracy, wire fraud conspiracy and money laundering conspiracy, and has been free on a $3 million bond since February 2024.

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Many high-profile individuals from the crypto industry who faced criminal charges did not publicly comment on social media until the conclusion of their cases, likely on the advice of counsel. Such statements may be used at trial.

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Karony’s case, first filed in November 2023, came as Donald Trump appointee Joseph Nocella assumed the role of interim US Attorney for the court district. EDNY’s courts have previously handled cases involving allegations of crypto fraud, but it’s unclear whether politics will play a role moving forward, given Trump’s alignment with the crypto industry.

In the neighboring US District Court for the Southern District of New York, Alex Mashinsky is scheduled to be sentenced on May 8. The former Celsius CEO pleaded guilty to two felony charges in December 2024. Prosecutors have asked a judge to impose a 20-year sentence.

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