SafeMoon CEO Gets 8 Years in Prison for Crypto Fraud Scheme
Braden John Karony, CEO of SafeMoon, was sentenced to 100 months in prison after being convicted of conspiracy to commit securities fraud, wire fraud, and money laundering for his role in defrauding SafeMoon (SFM) token investors. He was also ordered to forfeit $7.5 million, with restitution yet to be decided. Karony misappropriated funds that were intended to strengthen SafeMoon’s token liquidity, instead using the money to purchase luxury items such as homes and cars. The SafeMoon token, which rose to an $8 billion market cap in 2021, operated using a 10% transaction tax partly meant to benefit holders and liquidity pools—funds Karony diverted for personal gain through complex financial transactions. Co-conspirator Thomas Smith pleaded guilty and is awaiting sentencing, while a third suspect, Kyle Nagy, remains at large. Karony’s sentence is shorter than the 12 years requested by prosecutors but demonstrates serious consequences for financial crime.
