- Testimony during the safemoon trial revealed that project leaders approved misleading statements about liquidity on the company’s website.
- Former SafeMoon staffer Henry Wyatt described a tense workplace and detailed his decision to resign due to leadership issues.
- The prosecution focused on technical misrepresentations, while defense questioned the degree of leadership involvement and intent.
The second week of the criminal trial of former SafeMoon CEO John Karony continued in a federal courtroom, according to Protos. On the stand was Henry “Hank” Wyatt, a former employee responsible for communications at SafeMoon until his resignation in September 2021.
Wyatt testified under questioning from prosecutors that Karony, along with Kyle Nagy and chief technology officer Thomas Smith, approved language for the company’s website in March 2021 that gave users the impression that new liquidity created by the protocol would be “automatically” locked in its liquidity pool. That claim meant investors believed their funds were secured and not accessible to insiders without permission.
According to Wyatt, later messages showed that Karony ordered updates to clarify that “LP is auto-generated but not auto-locked”—referring to how SafeMoon’s 10% transaction fee supplied liquidity, but it was not secured automatically. Karony also switched the phrase “100% community owned” to “100% community driven.”
Prosecutors presented these changes as evidence that misrepresentation happened under Karony’s leadership, an issue that may support securities fraud charges. Wyatt’s testimony, as reported by Protos, also touched on his workplace experience. He described Karony as “not a good communicator… He was very aggressive. He would call me any hour of the night to cuss out somebody.” Wyatt said this environment led him to resign, calling it a “hostile work environment.”
Defense attorney Nicholas Smith cross-examined Wyatt, highlighting that Wyatt himself did not attempt to correct the misleading language, and reminded the jury that Wyatt is not facing charges and only appeared by subpoena. Smith also noted that Karony spent much of the period in question in London and had minimal personal contact with other senior leaders. This was referenced as possibly lessening the chance for alleged conspiracy.
The prosecution limited its arguments to technical statements and documentary evidence, as observed throughout the trial’s proceedings.
For more details, see additional trial coverage from Protos and their full reporting on SafeMoon leadership and legal updates.
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