Secure

when

SafeMoon

John Karony, CEO of the <a href="https://bitcoinist.com/safemoon-bankruptcy-filing-sends-token-crashing-40/" target="_blank" rel="noopener ">bankrupt crypto firm SafeMoon</a>, has experienced a setback in his legal defense following his attorneys’ decision to withdraw from the case. Karony is currently <a href="https://www.newsbtc.com/news/safemoon-executives-face-doj-arrests-and-sec-charges-sfm-plummets-more-than-50/" target="_blank" rel="noopener nofollow">facing criminal charges</a> for conspiracy to commit wire fraud, money laundering, and securities fraud in the US. 
<h2 id="b-karony-s-lawyers-file-motion-to-withdraw-b">Karony’s Lawyers File Motion To Withdraw</h2> 
Petrillo Klein &amp; Boxer, Karony’s lawyers, have filed <a href="https://bitcoinist.com/ripple-sur-reply-against-sec/" target="_blank" rel="noopener ">another motion</a> to withdraw as counsel to the defendant due to “his lack of funds to pay for private counsel.” The lawyers had previously filed a motion dated January 22, 2024, where they made the same request due to their client’s lack of funds to pay for their services.&nbsp; 
In their most recent filing, the lawyers highlighted that Karony had gotten another counsel through the <a href="https://bitcoinist.com/us-justice-dept-executes-first-crypto-charge/" target="_blank" rel="noopener ">Criminal Justice Act</a>. Judge Eric Komitee had, in his response to Petrillo Klein &amp; Boxer’s initial motion, mentioned that non-payment of legal fees wasn’t a sufficient basis to permit an attorney’s withdrawal from representation.&nbsp; 
However, he added that the court would consider and “likely grant” the motion if Karony’s lawyers could get the defendant another counsel. Judge Komitee had specifically ordered the lawyers to help Karony apply for counsel through the Criminal Justice Act if he could not pay for his defense.&nbsp; 
<h2 id="b-what-led-up-to-karony-s-inability-to-pay-legal-fees-b">What Led Up To Karony’s Inability To Pay Legal Fees</h2> 
In their initial motion, Petrillo Klein &amp; Boxer mentioned that SafeMoon had agreed to indemnify its CEO for legal fees owed to the firm. However, the crypto firm failed to deliver on its promises and subsequently <a href="https://bitcoinist.com/safemoon-bankruptcy-filing-sends-token-crashing-40/" target="_blank" rel="noopener ">filed for bankruptcy</a>.&nbsp; 
The lawyers also revealed that they had received a limited retainer fee, which was paid on behalf of Karony, but the amount has been exhausted by legal fees to date. 
Additionally, the <a href="https://bitcoinist.com/us-government-bitcoin-holdings/" target="_blank" rel="noopener ">government</a> had seized proceeds from the sales of Karony’s house in Utah, making it harder for the SafeMoon CEO to pay legal fees to the firm. As such, seeing that their client had no means to pay, Petrillo Klein &amp; Boxer noted that they “had no choice but to withdraw its representation of Karony.”&nbsp; 
<img loading="lazy" decoding="async" class="wp-image-281088 size-large" src="https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?resize=980%2C468" alt="" width="980" height="468" srcset="https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=2372 2372w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/02/Safemoon-ceo-crypto.png?w=1140 1140w" sizes="(max-width: 980px) 100vw, 980px" data-recalc-dims="1"> Karony’s Lawyers Secure His Bail 
In what might be their last deed as Karony’s lawyers, Petrillo Klein &amp; Boxer were able to secure Karony’s bail. According to a <a href="https://www.law360.com/articles/1796506/safemoon-ceo-finally-gets-bail-in-300m-crypto-fraud-case" target="_blank" rel="noopener nofollow">Law360 report</a>, the SafeMoon CEO was released on a $3 million bond on February 9 and ordered to live at his parent’s home in Utah.&nbsp; 
The bail conditions include cyber and electronic monitoring and a ban on Karony’s crypto promotional activities.&nbsp; 
Prosecutors had initially blocked Karony’s release last year when they got a New York District Judge to <a href="https://www.courtlistener.com/docket/67935173/13/united-states-v-karony/" target="_blank" rel="noopener nofollow">stay</a> the defendant’s <a href="https://www.courtlistener.com/docket/67935242/united-states-v-karony/?filed_after=&amp;filed_before=&amp;entry_gte=&amp;entry_lte=&amp;order_by=desc#entry-13" target="_blank" rel="noopener nofollow">bail release order.</a> Then, they argued that Karony posed a flight risk and had substantial financial means to jump bail. They also added that his release posed a “continued danger to the community.” 
However, this time, prosecutors are reported to have been content with the bail conditions that Magistrate Judge Taryn Merkl had set for the defendant.&nbsp; 
Cover image from Dall-E, chart from Tradingview

Safemoon CEO On The Brink Of Losing Legal Representation Due To Lack of Funds

Table of Contents

Bitcoinist

Other articles published on Feb 13, 2024

Top 10 Crypto Billionaires in 2024

Blockchain community divided over new ERC-404 tokens

China sees consumers cut spending amid price decline

Shiba Inu Sparks Renewed Enthusiasm with Surge in Token Burns

Bitcoin Reaches $50,000: Analyzing the Recent Price Surge

Why is the Crypto Community Buzzing Over Coinbase’s New Ad?

Join our free newsletter for daily crypto updates!