SafeMoon CEO Given 8-Year Jail Time Over Crypto Scam

Former SafeMoon CEO Braden Karony has been sentenced to 100 months in jail for stealing $9 million from the crypto platform’s liquidity pool in 2021 to fund a “lavish life-style.”

The sentence on Monday comes 9 months after Karony was convicted by a federal jury on expenses of conspiracy to commit securities fraud, wire fraud and cash laundering in Could 2025. 

“Not solely did Braden John Karony abuse his place as CEO, however he additionally betrayed his buyers’ belief by stealing greater than 9 million {dollars} in digital property from his firm to fund his lavish life-style,” FBI assistant director James C. Barnacle, Jr. mentioned.

Karony used the stolen proceeds to buy a $2.2 million residence in Utah, an Audi R8 sports activities automobile, a Tesla, a customized Ford F-550 and Jeep Gladiator pickup vehicles.

“Karony lied to buyers from all walks of life — together with navy veterans and hard-working Individuals,” US Lawyer Joseph Nocella, Jr. mentioned, including:

“At this time’s sentence demonstrates that there are vital penalties for monetary crimes. Our Workplace will proceed to vigorously prosecute financial crimes that hurt buyers and weaken societal belief within the stability and safety of digital asset markets.”

Karony was ordered to forfeit roughly $7.5 million, the Division of Justice mentioned, whereas the quantity of restitution to the victims will probably be decided at a later date. 

Two SafeMoon execs convicted, one at massive

SafeMoon’s former chief expertise officer, Thomas Smith, pleaded responsible in February 2025 to conspiracy to commit securities and wire fraud and is awaiting sentencing.

SafeMoon platform’s creator, Kyle Nagy, stays at massive, the DOJ added.

Karony is certainly one of many former crypto executives who’ve now been convicted and sentenced for crimes dedicated through the 2021-2022 market cycle, when retail market participation was at its peak.