- Former SafeMoon CEO Braden John Karony was sentenced to over 8 years in jail for defrauding traders and misappropriating tens of millions from “locked” liquidity swimming pools.
- Karony was convicted of securities fraud, wire fraud, and cash laundering, having diverted over US$200 million to fund a lavish life-style together with luxurious properties and automobiles.
- The court docket ordered the forfeiture of two residential properties and roughly US$7.5 million, with a ultimate restitution listening to scheduled for April 23, 2026.
A federal choose in Brooklyn sentenced former SafeMoon CEO, Braden John Karony, to 100 months in jail for deceptive and defrauding investor funds from the crypto undertaking’s “locked” liquidity swimming pools.
US District Choose Eric R. Komitee imposed 100 months on the wire-fraud conspiracy depend and 60 months on the securities-fraud conspiracy depend, to run concurrently. The court docket set a separate listening to on the money-laundering depend for April 23, 2026, at 10 a.m.
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How SafeMoon Began
SafeMoon launched in March 2021 and was promoted as a DeFi token designed to guard consumers from insider promoting and “rug pulls.” Prosecutors mentioned Karony and co-conspirators Kyle Nagy and Thomas Smith publicly promised liquidity was locked and touted a ten–12% transaction tax as a mechanism to assist holders.
They mentioned the group retained management behind the scenes, then diverted greater than US$200 million (AU$306 million) from the liquidity swimming pools whereas utilizing wash buying and selling, value manipulation, and pseudonymous wallets and exchanges to maneuver funds.
Prosecutors mentioned Karony personally obtained about US$9 million (AU$13.7 million) and spent it on luxurious purchases, together with a US$2.2 million (AU$3.3 million) dwelling in Utah, different property, and a number of automobiles.
Not solely did Braden John Karony abuse his place as CEO, however he additionally betrayed his traders’ belief by stealing greater than 9 million {dollars} in digital property from his firm to fund his lavish life-style.
Karony was charged in November 2023 with conspiracy to commit securities fraud, wire-fraud conspiracy, and cash laundering, alongside associated SEC civil motion. A jury convicted him on all counts on Might 21, 2025, after a 12-day trial. Prosecutors sought a 12-year sentence; the protection requested for about one 12 months, arguing mitigating elements together with his age on the time.
The court docket additionally ordered forfeiture of two residential properties and set monetary penalties that embody roughly US$7.5 million (AU$11.4 million) in forfeiture and one other US$7.5 million in restitution, with ultimate figures to be addressed on the April listening to.
Karony is scheduled to serve three years of supervised launch after his jail time period. Smith has pleaded responsible and is awaiting sentencing. Nagy stays at giant.
SafeMoon later filed for chapter in Utah after the arrests.
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