A federal jury has convicted SafeMoon CEO Braden John Karony on three counts of fraud stemming from a crypto scheme that allegedly defrauded investors of millions of dollars.
Karony could face up to 45 years in prison on charges of conspiracy to commit securities fraud, wire fraud, and money laundering, the U.S. Attorney’s Office for the Eastern District of New York said in a Wednesday release.
In 2021, SafeMoon LLC issued the digital assets known as SafeMoon, which once reached a market cap of more than $8 billion. The cryptocurrency had a 10% tax on every transfer.
While the project told investors that half of the 10% fee would be “locked” in a liquidity pool, U.S. prosecutors said that Karony and co-conspirators fraudulently diverted millions in liquidity from the pool for personal gains.
“As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” said Attorney Joseph Nocella, Jr.
While Karony claimed company executives did not hold or trade SafeMoon, prosecutors said they repeatedly bought and sold the cryptocurrency to make millions in illicit profits, which they concealed through a “labyrinth” of private, unhosted wallets, transaction routing and pseudonymous accounts on centralized exchanges.
Karony alone allegedly made more than $9 million in crypto assets, which he used to purchase millions of dollars’ worth of real estate and several luxury automobiles, including two Audi R8 sports cars, a Tesla, and more.
Co-conspirator Thomas Smith previously pleaded guilty and is awaiting sentencing, while another co-conspirator Kyle Nagy is still at large.
Meanwhile, Karony repeatedly wrote on X that he is innocent and did not commit fraud.
The Block has reached out to Karony for comment on the matter.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
