Former SafeMoon CEO Braden John Karony faces an 8-year prison sentence after being convicted last year on federal charges linked to defrauding investors in his digital asset operation.
The 100-month sentence was handed down Tuesday in the U.S. District Court for the Eastern District of New York, and Karony must also forfeit $7.5 million and two homes in the case.
“Karony lied to investors from all walks of life — including military veterans and hard-working Americans — and defrauded thousands of victims into buying mansions, sports cars and specialty trucks,” U.S. Attorney Nocella said in a statement. “Our office will continue to vigorously prosecute financial crimes that harm investors and undermine public confidence in the stability and security of digital asset markets.”
Karony is said to have participated in manipulating the price of the SafeMoon token and illegally controlling cash pools at the failed Utah-based company to drain millions of dollars, according to the Justice Department. After a three-week trial, he was convicted of conspiracy to commit securities fraud, wire fraud and money laundering.
A co-conspirator, Thomas Smith, also pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud, although he has not yet been sentenced. Another alleged SafeMoon conspirator, Kyle Nagy, is still wanted by authorities.
Read more: SafeMoon Execs Arrested by DOJ in Fraud Probe, Charged by SEC
