The CEO of the bankrupt cryptocurrency asset company SafeMoon LLC, Braden John Karony, requested a Brooklyn federal judge on Friday to compel the U.S. government to clarify its potential involvement in a social media post that he claims misled SafeMoon investors.
In a letter, SafeMoon’s counsel stated that a post on Reddit, asking SafeMoon investors to come forward to be connected with U.S. authorities, inaccurately suggested a link between the losses experienced by SafeMoon investors and the company’s liquidity pool representations. The letter further explained that Karony had previously inquired with the government about whether they were behind the Reddit post but had not received a satisfactory response.
Karony, along with SafeMoon Chief Technology Officer Thomas Smith and co-founder Kyle Nagy, was indicted in November 2023 on charges of conspiracy to commit securities fraud, wire fraud, and money laundering, following allegations that the executives misled investors. The government claims the SafeMoon leaders led investors to believe that a significant portion of their decentralized assets were locked or inaccessible, when in fact the executives used the funds for personal interests.
