Braden Karony, the CEO of SafeMoon, is facing up to 45 years in prison for diverting millions of dollars in cryptocurrencies from the crypto project he led.
Karony was found guilty of securities fraud, wire fraud, and money laundering. He diverted over $9 million to buy luxury cars and properties.
A federal jury in New York declared Karony guilty of three charges related to fraud through a cryptocurrency scheme that defrauded investors of millions of dollars.
The SafeMoon Scam
According to a report by The Block, Karony faces up to 45 years in prison for promoting the sale of SafeMoon, a token that emerged in 2021 and attracted the attention of a large number of international investors. The project capitalized over $8 billion, but some of the financial promises made by the team lacked legal basis.
The main feature of the token was a 10% commission on each transaction, supposedly intended to strengthen liquidity. However, it was proven that this was not true.
The US Attorney’s Office for the Eastern District of New York stated that Karony and his co-conspirators fraudulently diverted millions of dollars from the pool, using the funds for personal benefit. During the trial, prosecutors demonstrated that the project’s promises were false and that Karony himself operated with the intention of getting rich quickly.
Consequences and Next Steps
Thomas Smith, one of the co-conspirators, pleaded guilty earlier and is awaiting sentencing. Another suspect, Kyle Nagy, remains at large.
Karony publicly declared on the social network X that he is innocent and denies committing fraud. So far, he has not issued additional official comments.
The SafeMoon case serves as a warning to retail investors and the crypto ecosystem as a whole. Projects that reach multimillion-dollar valuations in a short time without transparency or audits can easily become financial traps.
Furthermore, it highlights the need for stricter regulatory frameworks and active surveillance over emerging projects in the crypto space, especially those handling investor funds under promises of security and growth.