The U.S. Department of Justice confirms that it will continue to pursue fraud lawsuit against former SafeMoon CEO

On April 21st, according to law360.com citing documents submitted by the U.S. Department of Justice (DOJ) last Friday, the Department of Justice during the Trump era had pushed to reduce enforcement efforts on cryptocurrencies, but this did not prevent federal prosecutors from pursuing charges against SafeMoon's former CEO, Braden Karony. Karony faces fraud charges related to the collapse of the token. He is scheduled to stand trial in May, which will be a key litmus test of whether the Department of Justice's new policy will protect executives from past allegations of misconduct. On April 18th, federal prosecutors in the Eastern District of New York confirmed that they will continue with the lawsuit. Karony is charged with conspiracy to commit securities fraud, wire fraud, and money laundering, has pleaded not guilty, and has been on $3 million bail since February.

Earlier on April 10th, the SafeMoon CEO filed a motion to dismiss the lawsuit citing the dissolution of the cryptocurrency division by the U.S. Department of Justice.