The criminal trial of former Safemoon CEO John Karony entered its second week with testimony from Henry “Hank” Wyatt, a Safemoon staff member who handled communications until his resignation in September 2021.
Wyatt asked prosecutors questions and testified that Caranie, Safemon creator Kyle Naggie and CTO Thomas “Papa” Smith had co-approved the content on Safemon’s website in March of that year, which misrepresented the nature of talk nemics.
Specifically, these include the claim that the new liquidity generated by the protocol is “automatically” locked into the liquidity pool.
Wyatt also testified that Kalanie later directed the language to change. In the saved message, Kalanie asked for a language to clarify:LP is auto-generated but not auto-locked“Through Safemoon’s 10% trading fee.
Kalanie has also changed the slogan “100% Community Owned” to “100% Community Driven.”
Subsequent changes in Karony’s directions may lead them to conclude that the ju-decided ultimately did the right thing, but they are likely to receive strong instructions that misrepresentation about Karony’s watches meets legal standards for securities fraud.
Prosecutors generally stick to this kind of modest technical approach and avoid the prosperity of theatre and strong narratives.
Read more: John Carany Trial starts with a confused Witness and Safemon product
A rare glimpse into the trial of Kalanie’s character up until now, Wyatt testified that he chose to step down from Safe Moon due to his “hostile work environment.”
He added, “(Caraney) wasn’t a good communicator… he was very aggressive. He would call me at any time of the night to cuss someone.”
The prosecution did not pursue further details about Kalanie’s hostility.
Under cross-examination by defense attorney Nicholas Smith, Wyatt testified that he had it himself. Didn’t actively try to fix misrepresentation on Safemoon’s website. Wyatt has not been charged with a crime and is testified under a subpoena.
Smith also elicited from Wyatt that Caranie had not interacted with other core leadership and was based in London for many of the issues. It may help to undermine allegations of conspiracy in the heart of the ju apprentice.
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