Protection attorneys within the felony fraud trial of John Karony neared the tip of their case on Monday. The previous SafeMoon CEO is accused of misrepresenting SafeMoon to traders, together with by secretly withdrawing funds from SafeMoon liquidity swimming pools and utilizing them for private purchases, together with automobiles and actual property.
His protection technique stays centered on characterizing Karony’s use of funds from the SafeMoon liquidity pool as being in step with public statements.
The day’s most colourful witness, Nicholas Ranalli, a manufacturing unit employee from Canada, testified to his consciousness that the SafeMoon liquidity pool was not solely “locked,” and that he felt its use for improvement and working bills was acceptable to him as an investor.
“I figured that would be obvious,” Ranalli mentioned of the spending. “They deserve that money.”
Ranalli in contrast it to working a scorching canine and hamburger restaurant. “If you want to get to steaks, you have to use the money you made from hamburgers and hot dogs.”
On cross-examination, Ranalli testified that he nonetheless holds SafeMoon tokens and is “hoping the price will go up,” suggesting motivation for his supportive testimony.
The protection additionally referred to as Rutgers Professor Bruce Mizrach, who walked the jury via worth knowledge following occasions, together with the “locking” of three tranches of SafeMoon liquidity.
Every lock adopted a interval of worth declines and triggered a subsequent rally. Mizrach additionally tracked token worth motion all through April 21, 2021, the day after an activist referred to as Battle on Rugs highlighted withdrawals from the SafeMoon liquidity pool.
That triggered a 50% drawdown within the SafeMoon token worth, and Mizrach confirmed optimistic worth reactions to statements by Karony the following day.
Broadly, the protection gave the impression to be hoping to point out that Karony’s actions and statements benefited traders somewhat than harming them. Nonetheless, prosecutors emphasised that the worth dropped once more, by greater than 26%, on April 22.
