SafeMoon CEO John Karony Claims He’s “Innocent” Of Multi-Million Crypto Fraud Scheme
SafeMoon (SFM) CEO John Karony took to X (formerly Twitter) on April 21 to defend his innocence after being charged by U.S. officials with fraud over a multi-million dollar crypto scheme last November.
“I’ll keep this post brief and to the point. I’m innocent, I didn’t commit fraud,” Karony wrote. “Looking forward to this case progressing. I won’t be broken. I won’t be bullied.”
I'll keep this post brief and to the point.
I'm innocent, I didn't commit fraud.
Looking forward to this case progressing.
I won't be broken. I won't be bullied. pic.twitter.com/5TecbbOF8g
— John Karony (@CptHodl) April 21, 2024
Karony was arrested alongside SafeMoon CTO Thomas Smith last November for conspiracy to commit securities fraud, money laundering conspiracy, and conspiracy to commit wire fraud for their roles in defrauding customers of the crypto company out of millions of dollars.
SafeMoon’s founder, Kyle Nagy, was also charged but is currently at large, with crypto community members speculating that he may have left the country.
In spite of Karony’s purported hopes that the case against him will move forward, the former SafeMoon CEO has encountered some legal trouble.
In January, attorneys from the law firm Petrillo Klein Boxer representing Karony withdrew their counsel, citing a lack of funds. He has since been assigned a public defender to represent his case.
Prosecutors allege Nagy, Smith, and Karony all misappropriated customer funds by stealing the money from “locked” liquidity pools, in which they assured customer assets would be safeguarded against typical rug pull schemes.
In reality, the three alleged crypto fraudsters had access to these liquidity pools to “intentionally divert and misappropriate millions of dollars’
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