U.S. prosecutors have put aside the bail order for SafeMoon CEO, saying he is a flight risk and may endanger the community.

U.S. federal prosecutors have sought to set aside SafeMoon CEO Braden John Karony's bail, arguing that he is a flight risk and that his release could pose a "danger to the community." On November 9, New York District Judge Lashann DeArcy Hall suspended the November 8 bail order after prosecutors challenged a Utah district judge's decision to release Karony on $500,000 bail. Prosecutors challenged New York Judge Daphne Oberg's decision, saying the release order "failed to take into account the defendant's financial strength and ability to escape" and that releasing him "posed an ongoing danger to the community. If convicted, the defendant would face the statutory maximum 45 years in prison. These facts provide a powerful incentive for the defendants to use their substantial (and opaque) financial assets and foreign relationships to avoid such an outcome." (Cointelegraph) Earlier news, the U.S. SEC filed a lawsuit in the District Court for the Eastern District of New York, accusing the encryption company SafeMoon LLC and its founder Kyle Nagy, SafeMoon US LLC, the company’s CEO John Karony, and Chief Technology Officer Thomas Smith of using unregistered crypto asset security SafeMoon. Charges include conducting a large-scale fraudulent scheme, securities fraud, wire fraud and money laundering conspiracy.