SafeMoon CEO Found Guilty in $9M Crypto Fraud Case, Faces 45 Years in Prison

In Brief:

Braden Karony, CEO of SafeMoon, was convicted on all counts of securities fraud, wire fraud, and money laundering.

The jury found he misled investors and diverted millions in investor funds for personal use.

A U.S. federal jury has found SafeMoon CEO Braden Karony guilty of multiple charges of crypto fraud, including conspiracy to commit securities fraud, wire fraud, and money laundering. The 12-day trial concluded in the Eastern District of New York, where Karony was accused of stealing millions in investor funds and using them to fund a lavish lifestyle.

According to the Department of Justice, Karony and his co-conspirators falsely marketed SafeMoon as a secure token with a built-in 10% transaction fee model, promising redistribution and locked liquidity. In reality, Karony retained access to the liquidity pool, used pseudonymous wallets, and quietly traded the token during price spikes—violating public trust.

Investigators say Karony personally gained over $9 million, which he used to buy properties, luxury vehicles, and custom trucks. The jury also ordered the forfeiture of over $2 million in assets, including one residential property.

Co-defendant Thomas Smith has pleaded guilty and awaits sentencing, while Kyle Nagy, another key figure in the scheme, remains at large. The case was led by the FBI, IRS Criminal Investigation, and Homeland Security, with support from the SEC.

The ruling marks a major milestone in the U.S. crackdown on fraudulent crypto schemes, reinforcing concerns about lack of oversight in the digital asset space.

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