Federal prosecutors are advancing with criminal charges against the creators of the Safemoon cryptocurrency despite new guidelines from the Department of Justice (DOJ). In a letter to a federal judge, DOJ attorneys confirmed that the Safemoon case should go to trial, asserting it aligns with current policy amid their review process. This comes after a memo suggested limiting cases that entail determining the securities status of digital assets. The founders of Safemoon face allegations of securities fraud, wire fraud, and money laundering, accused of misleading investors by claiming their tokens' liquidity was locked while diverting funds for personal use. A judge rejected a motion to dismiss the case based on claims that the token is not a security, suggesting such determinations are appropriate for a jury. The DOJ's commitment to pursuing fraud cases within the crypto sector remains intact, maintaining pressure on the defendants despite policy changes.

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