SafeMoon (SFM) CEO John Karony took to X (previously Twitter) on April 21 to defend his innocence after being charged by U.S. officers with fraud over a multi-million greenback crypto scheme final November.
“I’ll preserve this put up temporary and to the purpose. I’m harmless, I didn’t commit fraud,” Karony wrote. “Trying ahead to this case progressing. I gained’t be damaged. I gained’t be bullied.”
John Karony Denies Crypto Fraud Costs
I am going to preserve this put up temporary and to the purpose.
I am harmless, I did not commit fraud.
Trying ahead to this case progressing.
I will not be damaged. I will not be bullied. pic.twitter.com/5TecbbOF8g
— John Karony (@CptHodl) April 21, 2024
Karony was arrested alongside SafeMoon CTO Thomas Smith final November for conspiracy to commit securities fraud, cash laundering conspiracy, and conspiracy to commit wire fraud for his or her roles in defrauding prospects of the crypto firm out of thousands and thousands of {dollars}.
SafeMoon’s founder, Kyle Nagy, was additionally charged however is presently at massive, with crypto group members speculating that he might have left the nation.
SafeMoon CEO In Authorized Scorching Water
Regardless of Karony’s purported hopes that the case in opposition to him will transfer ahead, the previous SafeMoon CEO has encountered some authorized hassle.
In January, attorneys from the regulation agency Petrillo Klein Boxer representing Karony withdrew their counsel, citing an absence of funds. He has since been assigned a public defender to characterize his case.
Prosecutors allege Nagy, Smith, and Karony all misappropriated buyer funds by stealing the cash from “locked” liquidity swimming pools, during which they assured buyer property could be safeguarded in opposition to typical rug pull schemes.
In actuality, the three alleged crypto fraudsters had entry to those liquidity swimming pools to “deliberately divert and misappropriate thousands and thousands of {dollars}’ value of tokens” for their very own private profit.
In keeping with a press launch from the U.S. Legal professional’s Workplace, the SafeMoon trio used the stolen funds to buy a “customized Porsche sports activities automobile, different luxurious autos and actual property.”
“SafeMoon’s executives grew their firm worth to over $8 billion, however as an alternative of rewarding their purchasers as promised, their insatiable greed led them to spend thousands and thousands of {dollars} on their very own lavish needs,” stated Ivan J. Arvelo, Particular Agent in Cost of Homeland Safety Investigations in New York. “Right this moment, no luxurious autos or sprawling actual property can shield them from the results of such crimes.”
Regardless of being on a $3 million bail, it’s presently unclear when Karony is due again in court docket.