SafeMoon CEO Gets 8 Years for $10M Crypto Fraud

• SafeMoon CEO Karony was sentenced to 8 years for defrauding investors of $9M in crypto.
• Karony used diverted funds to buy luxury homes, cars, and custom trucks.
• Federal agencies traced complex crypto transactions, securing convictions and forfeitures.

Braden John Karony, former CEO of SafeMoon, will spend eight years behind bars. A federal judge handed down the sentence on Wednesday in Brooklyn. 

Karony orchestrated a massive fraud that cost investors millions. The Department of Justice announced the conviction following a three-week trial in May 2025.

SafeMoon CEO Stole Millions from Investor Funds

Karony abused his position to fund a lavish lifestyle. He bought mansions, sports cars, and custom trucks with stolen money. 

The scheme netted him over $9 million in crypto assets. U.S. Attorney Joseph Nocella stated that Karony lied to investors from all walks of life. Military veterans and hardworking Americans lost their savings. 

Judge Eric Komitee ordered Karony to forfeit approximately $7.5 million. A federal jury also mandated the forfeiture of two residential properties. Restitution amounts will be determined later.

How the SafeMoon Scam Worked

SafeMoon launched in March 2021 as a digital asset on blockchain technology. 

The token quickly grew to millions of holders worldwide. At its peak, SafeMoon reached a market capitalization exceeding $8 billion.

Every transaction carried a 10% automatic tax. Half of this tax was supposedly returned to existing holders. The other half should have entered locked liquidity pools. Karony promised investors these pools were secure and inaccessible.

But those promises were lies. Karony and his associates retained secret access to the liquidity pools. They quietly drained millions while publicly claiming the funds were locked. The CEO also traded SafeMoon tokens despite denying any personal holdings.

Luxury Purchases Funded by Fraud

Karony spent stolen funds on an extravagant lifestyle. Records show he purchased a $2.2 million home in Utah. He also bought additional properties in Utah and Kansas. His vehicle collection included a $277,000 Audi R8 sports car.

The shopping spree continued with another Audi R8 and a Tesla. Karony even ordered custom Ford F-550 and Jeep Gladiator pickup trucks. Meanwhile, investors watched their holdings lose value.

FBI Assistant Director James Barnacle emphasized the betrayal of trust. Karony exploited his position and deceived those who believed in his project. The complex web of transactions couldn’t hide the truth forever.

Federal Agencies Track Down Stolen Assets

Multiple agencies collaborated to bring Karony to justice. The FBI, IRS Criminal Investigation, and Homeland Security Investigations worked together. 

They traced cryptocurrency movements through numerous wallet addresses and exchange accounts.

IRS-CI Special Agent Harry Chavis explained how agents followed the money trail. Karony used complex routing to obscure his transactions. He relied on pseudonymous accounts and private wallets. But investigators outmaneuvered his schemes.

The U.S. Securities and Exchange Commission also contributed to the case. 

HSI Acting Special Agent Michael Alfonso noted that over a million victims suffered losses. The conviction sends a clear message about accountability in crypto markets.

Federal prosecutors pledged continued vigilance against digital asset fraud. U.S. Attorney Nocella stated the office will vigorously pursue economic crimes. The case demonstrates serious consequences await those who exploit investor trust.

SafeMoon investors placed faith in promises of innovation and growth. Instead, they faced systematic theft by the very person leading the company. The eight-year sentence marks the end of one chapter in crypto enforcement.

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