Former SafeMoon CEO Braden John Karony has been sentenced to 100 months in federal prison for conspiracy to commit securities fraud, wire fraud, and money laundering, the U.S. Department of Justice announced.
Karony was convicted at trial in May 2025 after a 12-day trial in Brooklyn federal court. The jury also issued a verdict to forfeit two residential properties.
According to prosecutors, Karony and his co-conspirators lied to SafeMoon investors about "locked" liquidity pools that would allegedly prevent insiders from conducting a "rug pull." In reality, Karony maintained access to the liquidity pools and used it to divert and misappropriate millions of dollars' worth of tokens for personal benefit.
Karony acquired over $9 million in crypto assets from the scheme and used proceeds to purchase a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, and custom pickup trucks.
SafeMoon's market capitalization briefly exceeded $8 billion during the 2021 crypto frenzy before collapsing. The company filed for Chapter 7 bankruptcy in December 2023.
Co-conspirator Thomas Smith pleaded guilty in February 2025 and is awaiting sentencing. Another alleged conspirator, Kyle Nagy, remains at large — reportedly surfacing in Russia, where he filed a complaint against FSB agents who allegedly extorted $4.5 million from him.
Karony was also ordered to forfeit $7.5 million. Over 150 victim impact statements were filed.