SafeMoon CEO Braden John Karony has attempted to get the case against him and his firm dismissed by referencing the US Department of Justice’s (DOJ) recent directive to scale back crypto enforcement. In a letter to Judge Eric Komitee, Karony’s attorney Nicholas Smith highlighted a memo from Deputy Attorney General Todd Blanche indicating that the DOJ would not pursue certain crypto charges, suggesting a shift in regulatory focus. The memo states that the DOJ will refrain from litigation actions similar to regulatory frameworks for digital assets. The DOJ previously charged Karony and other SafeMoon executives with securities violations and wire fraud, claiming they misappropriated $200 million. This dismissal attempt follows a prior motion made by Karony in February, where he sought to delay the case based on potential impacts from former President Donald Trump’s proposed crypto policies, and after chief technology officer Thomas Smith pleaded guilty to participating in the alleged fraud. SafeMoon has also faced issues from a hack in March 2023, which resulted in significant losses of funds.

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