by Matthew Russell Lee, Patreon Book Substack
EDNY COURTHOUSE, Dec 13 – On November 2, 2023 SafeMoon's trio were indicted in the U.S. District Court for the Eastern District of New York. Inner City Press covered it.
Prosecutors charged Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon” Earlier today, Karony was arrested in Provo, Utah...
On November 3, Smith was arraigned, bond document on Patreon here ....
On November 8, EDNY prosecutors wrote "seeking the detention of the defendant Braden John Karony." Full memo on Patreon here.
But Karony was ordered free on bond, by Magistrate Daphne A. Oberg (whose previous freeing of January 6 defendant John Earle Sullivan Inner City Press previously covered here). The EDNY prosecutors have written to the assigned District Judge to appeal / seek a stay, 6-page letter on Patreon here.
On Sunday November 12 Karony's lawyers wrote in that "without more, every U.S. citizen facing criminal charges in the digital asset space would be detained through trial, in effect establishing an unrebuttable crypto presumption." Full letter on Patreon here.
On November 13, Inner City Press live tweeted the bail appeal in which Karony was ordered detained and to be brought to EDNY, thread
On November 22, Karony's lawyers filed - Letter on Patreon here.
On November 27, the prosecutors replied that transport will take the time it takes, and there is no basis for release. Letter on Patreon here.
Late on November 29 the EDNY US Attorney's Office filed its discovery list, on Patreon here.
In the run up to an EDNY appearance by co-defendant Smith, the US Attorney's Office on December 5 disputed Karony's lawyers' characterization of their position. Email on Patreon here.
Inner City Press called in to District Judge Komitee's proceeding, but heard only lawyers on hot mic. The next day, it was docketed that the hearing - no public access, despite it being by phone? - was before a Magistrate Judge: "Minute Entry for proceedings held before Magistrate Judge James R. Cho: Government opposed the bail package as stated on the record." Was this an open proceeding? Judge Komitee has previously unsealed a sentencing video after Inner City Press' filing. But on this, there may be no remedy...
On December 18, co-defendant Thomas Smith had a new lawyer file a notice of appearance in the EDNY case - a Federal Defender, publicly paid. On Patreon here.
Back on December 8 Judge Komitee signed an order to move Karony from Utah's Metro & Oxbow Jail to the EDNY "forthwith," order on Patreon here.
And weeks later, Karony was appeared in the BOP database as in MDC Brooklyn for Christmas...
On December 28, co-defendant Thomas Smith's Federal Defender wrote in seeking permission, with prosecutors' consent, for him to travel to Evans, Georgia - for a training. Filing on Patreon here.
In February, Karony was given a new free lawyer and a $3 million bond package - but the co-signers are confidential, unlike what Inner City Press unsealed as to SBF in SDNY: "Minute Entry for proceedings held before Magistrate Judge Taryn A. Merkl: Bond Hearing as to Braden John Karony held on 2/9/2024. Bond set at 3 Million. Defendant released. Defendant advised of bond conditions set by the Court and signed the bond. 4 Surety/ies sworn, advised of bond obligations by the Court and signed the bond (2 present in Court, 2 by telephone). 2 Additional Surety/ies to co-sign bond by 12/16/2024. Sureties names and addresses should be redacted on the bond that is available to the public." Why?
Inner City Press on February 17 filed a letter to unseal the co-signers - on February 22 Judge Komitee to his credit had it docketed. But nothing happened (?)
Jump cut to December 13 when Karony sought to exclude expert testimony: "the government disclosed its intent to offer the expert testimony of John Griffin on October 11, 2024. Karony Ltr., ECF No. 78 at 1. The disclosure explained that the government’s proposed expert witness would “testify generally about crypto markets, blockchain technology, decentralized finance, digital-asset tracing, stablecoins, and other related matters.” Id., Exh. 1 at 1. Enumerated paragraphs then set forth a series of general topics, such as testimony “about” or “regarding”: “the function of digital-asset exchanges,” “how digitalasset transactions are conducted and how those transactions can be traced on the blockchain,” “common terms and jargon used among digital-asset investors,” “liquidity pools,” and “decentralized finance.” Id. at 1-2. As Karony explained to the Court on October 28, the government’s disclosure did not contain any “statement” of expert “opinion,” much less a “complete statement.” Letter on Patreon here.
Inner City Press will follow the case(s)
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