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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.

In response to the indictment, Karony filed a motion in April to have the charges dismissed, with Smith joining the motion in September. The letter filed Friday argues that if the government is involved in communications like the Reddit post, it could improperly influence the testimony of alleged SafeMoon victims, potentially infringing on Karony's due process rights.

The letter notes, "If directed by the government, communications like the Reddit post improperly taint the testimony of alleged SafeMoon victims in this case — particularly if they continue unabated."

In October, federal prosecutors from the Eastern District of New York maintained that Karony and Smith should not be allowed to dismiss the securities fraud and wire fraud charges by claiming their actions lacked necessary domestic ties. Brooklyn prosecutors argue that even though the alleged scheme occurred on a decentralized blockchain, the executives were U.S. citizens and residents when they operated the fraud through SafeMoon, a U.S.-based limited liability company. Furthermore, they argue the pair targeted investors in the U.S., including in New York’s Eastern District, with misleading statements.

Representatives from the involved parties did not immediately respond to requests for comment on Friday.

The government is represented by Drew Rolle, John Enright, and Matthew Galeotti from the U.S. Attorney’s Office for the Eastern District of New York.

Karony is represented by Nicholas D. Smith of David B. Smith PLLC.

Smith’s legal team includes Jeffrey Dahlberg, James Darrow, and Kathryn Wozencroft from the Federal Defenders of New York.

The case is U.S. v. Karony et al., case number 1:23-cr-00433, in the U.S. District Court for the Eastern District of New York.