Change in Leadership at EDNY
In a significant development for the Eastern District of New York (EDNY), Acting US Attorney John Durham has stepped down as Joseph Nocella takes over the interim role following his appointment by President Donald Trump. Nocella will serve for a period of 120 days or until a Senate-confirmed candidate is appointed, as announced by the US Attorney’s Office on May 5.
Ongoing Criminal Trial
This transition in leadership occurs at a crucial time as jury selection for the criminal trial of Braden John Karony, the former CEO of SafeMoon, is set to commence shortly. Karony, who is facing serious allegations including conspiracy to commit securities fraud, wire fraud, and money laundering, had previously petitioned the court in February to delay the trial’s start due to anticipated changes in US securities legislation proposed by Trump, which he argued could influence his case.
Nocella’s Priorities
Nocella has declared his focus on prosecuting serious offenses related to drug trafficking, gang activities, and terrorism, among other criminal enterprises. His recent elevation raises questions about how his priorities may influence the ongoing case against Karony, who has maintained his innocence and is currently out on a $3 million bond.
Legal Context
While the Eastern District of New York isn’t the most prominent venue for high-profile cryptocurrency-related prosecutions, it has handled key cases involving digital asset fraud, including actions against individuals such as Hex founder Richard Heart. Meanwhile, in a related legal context, the Southern District of New York is preparing to hold the sentencing of former Celsius CEO Alex Mashinsky on May 8.
Indictment and Trial Timeline
Karony, along with co-defendants Kyle Nagy and Thomas Smith, were indicted in late 2023 for purportedly misappropriating millions of SafeMoon’s SFM tokens between 2021 and 2022. As the trial approaches, US Magistrate Judge James Cho will oversee jury selection, while District Judge Eric Komitee is scheduled to preside over the trial beginning on May 6, 2024.
