Braden John Karony, former CEO of SafeMoon, was sentenced to 100 months in jail after being convicted of taking greater than $9 million in cryptocurrency from the undertaking’s liquidity pool in 2021 to pay for private luxuries.
The sentencing was handed down on February 10, after his conviction in Could 2025 on costs together with conspiracy to commit securities fraud, wire fraud, and cash laundering.
In keeping with federal prosecutors, Karony used investor cash to purchase luxurious objects. Notable purchases included a $2.2 million dwelling in Utah, an Audi R8 sports activities automobile, a Tesla, and customized Ford F-550 and Jeep Gladiator vans.
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The court docket ordered Karony to forfeit about $7.5 million. The precise quantity that might be returned to victims might be determined at a later date.
FBI Assistant Director James C. Barnacle Jr. famous that Karony betrayed individuals who relied on him. United States Lawyer Joseph Nocella Jr. pressured that fraud in digital forex will meet actual penalties.
SafeMoon began with a ten% transaction charge, cut up evenly between holders and the liquidity pool. Buyers have been advised the funds have been locked, however in reality, insiders might entry and misuse them.
Thomas Smith, previously SafeMoon’s chief expertise officer, pleaded responsible to associated costs in February 2025 and is awaiting his sentence. The undertaking’s creator, Kyle Nagy, has not been positioned by authorities.
Not too long ago, Daren Li acquired a 20-year sentence within the US for a crypto fraud scheme that defrauded victims worldwide of over $73 million. How did the case unfold? Learn the complete story.
