The U.S. Attorney’s Office for the Eastern District of New York (EDNY) has appointed Joseph Nocella as interim U.S. Attorney, according to a May 5 notice, following the departure of Acting Attorney John Durham. Nocella, selected by President Donald Trump, will serve for 120 days or until a Senate-confirmed successor is in place.
Nocella’s appointment is pivotal as jury selection begins in the high-profile criminal trial of Braden John Karony, former CEO of the cryptocurrency firm SafeMoon. Karony and co-defendants Kyle Nagy and Thomas Smith face multiple federal charges, including securities fraud, wire fraud, and money laundering. The Department of Justice alleges the trio misappropriated millions of dollars worth of SafeMoon’s native token, SFM, between 2021 and 2022.
While it remains uncertain how Nocella’s arrival may influence the direction of the case, he has publicly stated his commitment to targeting “narcotics traffickers, gang members, terrorists, human traffickers, and other criminals.”
Karony, who has maintained his innocence and was released on a $3 million bond earlier this year, previously requested a delay in the proceedings, citing potential impacts from Trump’s proposed changes to U.S. securities laws. That request was denied.
On May 5, Karony agreed to proceed with jury selection under U.S. Magistrate Judge James Cho, with District Judge Eric Komitee set to preside over the trial beginning May 6.
Though the EDNY has not been a frequent venue for crypto-related prosecutions, it has overseen notable digital asset cases, including an SEC complaint against Hex founder Richard Heart.
Meanwhile, the neighbouring Southern District of New York (SDNY)—a more prominent venue for financial crimes—is preparing to sentence former Celsius CEO Alex Mashinsky on May 8. In a parallel leadership shift, Jay Clayton, former SEC Chair and Wall Street veteran, serves as SDNY’s interim U.S. Attorney.
As Karony’s trial gets underway, the intersection of crypto, criminal law, and federal appointments increasingly deepens.
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