SafeMoon CEO Braden John Karony is seeking dismissal of charges against him and his firm by citing a recent US Department of Justice (DOJ) directive. The DOJ has decided to disband its crypto unit and will no longer pursue certain crypto-related charges. Karony's attorney referenced an April 7 memo from US Deputy Attorney General Todd Blanche, which states that the DOJ will not impose regulatory frameworks on digital assets. The DOJ and SEC had previously charged Karony and other SafeMoon executives with securities violations, wire fraud, and money laundering, alleging misappropriation of $200 million. Karony's latest legal maneuver follows previous attempts to delay his trial, citing potential impacts from proposed crypto policies by former President Donald Trump. SafeMoon filed for bankruptcy in December 2023 after facing legal challenges and a hack earlier that year.

Braden John Karony, the CEO of crypto firm SafeMoon, has cited the US Department of Justice’s directive to no longer pursue some crypto charges in an effort to get the case against him and his firm dismissed. 
In an April 9 letter to New York federal court judge Eric Komitee, Karony’s attorney, Nicholas Smith, said the court should consider an April 7 memo from US Deputy Attorney General Todd Blanche that disbanded the DOJ’s crypto unit.
“The Department of Justice is not a digital assets regulator,” Blanche said in the memo, which added the DOJ “will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets.”
Blanche also directed prosecutors not to charge violations of securities and commodities laws when the case would require the DOJ to determine if a digital asset is a security or commodity when charges such as wire fraud are available.
An excerpt of the letter Karony sent to Judge Komitee. Source: PACER
In the footnote of the letter, Karony’s counsel wrote an exemption to the DOJ’s new directive would be if the parties have an interest in defending that a crypto asset is a security, but added that “Karony does not have such an interest.”
The Justice Department and the Securities and Exchange Commission filed simultaneous charges of securities violations, wire fraud, and money laundering against Karony and other SafeMoon executives in November 2023.
The government alleged Karony, SafeMoon creator Kyle Nagy and chief technology officer Thomas Smith withdrew assets worth $200 million from the project and misappropriated investor funds. 
Another attempt to nix the case
The letter is Karony’s latest attempt to get the case thrown out. In February, he asked that his trial, scheduled to begin on March 31, be delayed as he argued President Donald Trump’s proposed crypto policies could potentially affect the case.
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Later in February, Smith changed his plea to guilty and said he took part in the alleged $200 million crypto fraud scheme. Nagy is at large and is believed to be in Russia.
SafeMoon filed for bankruptcy in December 2023, a month after it was hit with twin cases from the SEC and DOJ. It was also hacked in March 2023, with the hacker agreeing to return 80% of the funds.
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SafeMoon CEO Seeks Dismissal of Charges Citing DOJ's Crypto Directive