SafeMoon CEO John Karony’s bail release has been postponed while courts assess the level of flight risk

According to court documents dated November 9, a judge partially granted the U.S. Attorney’s Office’s request to challenge the bail release of John Karony, the CEO of crypto platform SafeMoon.

A filing from the New York Attorney General’s Office shows that a Utah judge, Daphne A. Oberg, issued Karony’s release order on November 8. Karony’s bail included a $500,000 bond as well as conditions of house arrest and restrictions on financial activities.

But prosecutors in the Eastern District of New York said the Utah judge did not take into account Karony’s finances and his ability to flee. Specifically, they said Karony had millions of dollars in assets that the court was unaware of, including a home in Utah currently being sold for $1.5 million, various expensive items and money from an unnamed company.

The Nov. 9 filing states that Karony’s release order will be stayed (paused) until the matter is resolved. This filing will be signed by District Judge LaShann DeArcy Hall for the Eastern District of New York, where Karony’s criminal case is ongoing.

The order does not completely revoke Karony’s release on bail, does not require that Karony remain in custody pending trial, nor does it require that Karony be transferred to the Eastern District of New York.

The government added that Karony had strong ties outside the US and assured that there were no conditions that could ensure he continued to perform.

Prosecutors noted that since working on SafeMoon, Karony “has shown a desire to remain abroad.” Specifically, it was said that Karony had made twelve trips to Europe in just over two years. Most recently, Karony was said to have been outside the US for five months before returning on October 27th. He planned to only stay in the USA for a few weeks.

Prosecutors filed charges this month

The U.S. Attorney’s Office for the Eastern District of New York alleged on November 1 that Karony and other SafeMoon executives committed securities fraud, wire fraud conspiracy and money laundering conspiracy.

The agency said Karony and other executives manipulated SafeMoon (SFM) prices and misused millions of dollars locked in SafeMoon liquidity pools. Executives spent these funds on luxury vehicles, real estate and personal investments.

The U.S. Securities and Exchange Commission, which filed parallel charges, suspected that the executives had committed a total of $200 million from their project.

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