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Here is the revised news article: SafeMoon CEO Released on Bail as Legal Team Withdraws Representation

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Braden John Karony, CEO of bankrupt crypto project SafeMoon, has been released on bail but his legal team no longer wants to represent him.

Arrests on Fraud Charges

In November 2023, Karony and SafeMoon CTO Thomas Smith were arrested on charges of securities fraud, money laundering, and conspiracy to commit wire fraud. However, the project’s creator, Kyle Nagy, remains at large.

Lack of Funds to Cover Legal Fees

Karony’s lawyers at Petrillo Klein & Boxer sought to withdraw from representing Karony on February 12 due to an apparent lack of funds. They mentioned the appointment of a public defender, Nicholas Smith, and Karony’s ongoing communication with him. See filing here.

MOTION to Withdraw as Attorney by Petrillo Klein and Boxer LLP. by Braden John Karony. (Schuman, Adam) (Entered: 02/12/2024)

– Live4offrd #AllForOne (@live4offrd) February 12, 2024

“Mr. Smith attended the bail hearing…and the court released Mr. Karony,” Adam Schulman of Petrillo Klein wrote. He said SafeMoon failed to provide funds for his retainer and filed for bankruptcy, and proceeds from Karony’s home sale to cover legal fees were seized.

Granted Bail with Conditions

On February 9, Karony was granted $3 million bail and allowed to stay at his parents’ home. Prosecutors had objected, arguing he posed a flight risk. Karony now faces cyber monitoring and a prohibition on crypto promotion.

SEC Allegations and Liquidity Drain

In November, the SEC accused SafeMoon of orchestrating a fraudulent unregistered offering, causing $200 million in losses. CTO Smith remains in custody. On February 9, his lawyers requested permission for him to travel for work.

On Monday, $11 million in liquidity was drained from pools linked to SafeMoon, sparking speculation about its bankruptcy proceedings.

The post Here is the revised news article:

SafeMoon CEO Released on Bail as Legal Team Withdraws Representation appeared first on Althalla.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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