Braden John Karony, the one-time CEO of SafeMoon, has been sentenced to 100 months in US federal jail after a jury discovered him responsible of a number of fraud counts.
In response to courtroom data and Justice Division statements, he was convicted on expenses that included securities fraud, wire fraud, and cash laundering.
Stories say prosecutors proved that traders have been instructed liquidity was safe when it was not, and that insiders have been in a position to transfer funds for private acquire.
“Not solely did Braden John Karony abuse his place as CEO, however he additionally betrayed his traders’ belief by stealing over $9 million in crypto from his firm to fund his lavish way of life,” James C. Barnacle, Jr., FBI assistant director, mentioned.
The founding father of SafeMoon has been sentenced to 100 months in jail
The founding father of FTX claims the change was solvent whereas serving 25 12 months sentence
— Wendy O (@CryptoWendyO) February 10, 2026
SafeMoon: False Locks And Hidden Transfers
Stories be aware that Karony and others instructed patrons that SafeMoon’s liquidity swimming pools have been “locked,” a declare that calmed many who put cash into the token. As an alternative, prosecutors confirmed how greater than $9 million was diverted from these swimming pools.
He used a few of the cash to purchase high-end properties and automobiles. The FBI described the strikes as deliberate. Victims included small traders and folks on modest incomes. Some misplaced financial savings. It left belief badly shaken.
In response to US Lawyer Joseph Nocella, Jr. Karony “lied to traders from all walks of life — together with navy veterans and hard-working People.”
Founding father of SafeMoon, Braden Karony, has simply been sentenced to 100 months in jail.
“That is extra like theft than fraud. It was not a small loss per individual like in lots of securities frauds. Mr. Karony, please rise.
I sentence you to 100 months within the custody of the AG. On rely… pic.twitter.com/riFdBLyNLU— Ariel Givner (@GivnerAriel) February 10, 2026
The Trial And Conviction
The trial ran for 3 weeks in Could 2025. A jury returned responsible verdicts throughout the board. Primarily based on studies, sentencing was dealt with by US District Choose Eric Komitee within the Jap District of New York.
The Justice Division sought a stiff time period, and the court docket obliged. One former government, Thomas Smith, has pleaded responsible and faces his personal punishment.
Different co-founders are nonetheless below scrutiny. Stories say authorities will press to recuperate funds by means of forfeiture and restitution orders.
BTCUSD buying and selling at $66,546 on the 24-hour chart: TradingView
Ruined Lives & Misplaced Cash
Individuals who backed SafeMoon typically did so as a result of they believed within the mission or needed a brand new option to make investments. Many came upon the onerous approach that guarantees in promo posts and social feeds can conceal actual risks.
Some traders watched balances drop. Others tried to observe the paper path and grew alarmed when transfers led to personal financial institution accounts and luxurious purchases. The case uncovered how rapidly belief can evaporate when controls fail.
Restitution And Future Circumstances
The court docket ordered forfeiture of about $7.5 million, however the full scale of losses remains to be being labored out in follow-up hearings. Restitution proceedings will intention to return cash to victims, however such processes can take time.
Legislation enforcement within the US has signaled a gentle curiosity in crypto fraud prosecutions. Meaning extra investigations and, possible, extra court docket dates for these accused of comparable schemes.
Featured picture from John Karony – Medium, chart from TradingView
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