Braden John Karony, the former CEO of SafeMoon, has been sentenced to eight years in prison following his conviction for involvement in a substantial cryptocurrency fraud scheme. The verdict was delivered by U.S. District Judge Eric Komite in a federal court in Brooklyn after a jury found him guilty in May 2025 after a trial that lasted three weeks.
The court documents reveal that Karony was convicted on multiple charges, including conspiracy to commit securities fraud, wire fraud, and money laundering. In addition to his prison sentence, he has been ordered to forfeit approximately $7.5 million. The final restitution amount to victims will be determined in subsequent proceedings. The jury also mandated the forfeiture of two residential properties owned by Karony.
Another individual involved in the scheme, Thomas Smith, entered a guilty plea in February 2025 and is awaiting sentencing. Meanwhile, Kyle Nagy remains at large. U.S. Attorney Joseph Nocella, Jr. stated, “Karony deceived investors from various backgrounds, including military veterans, by committing fraud that led to significant financial losses for thousands of victims. His actions funded a lifestyle marked by luxury goods, including mansions and high-end vehicles.”
FBI Assistant Director in Charge James C. Barnacle emphasized that Karony misused his position to betray the trust of investors, siphoning off over $9 million in cryptocurrency to support his extravagant lifestyle. Among the purchases made with these illicit funds were a $2.2 million home in Utah, several other properties in Kansas, and luxury vehicles such as a $277,000 Audi R8 sports car, a Tesla, and custom trucks.
According to IRS-CI New York Special Agent in Charge Harry T. Chavis, Karony executed the fraudulent scheme by taking advantage of his access to SafeMoon”s liquidity pool while attempting to hide his transactions. Law enforcement was ultimately able to trace these activities, bringing the scheme to light.
The SafeMoon token was launched in March 2021 on a public blockchain. Each transaction was subjected to a 10% tax, divided into two 5% portions—one aimed at rewarding holders and the other meant to enhance market liquidity through the company”s pools.
Following its launch, SafeMoon saw a meteoric rise in popularity, attracting millions of users and achieving a market capitalization that exceeded $8 billion. However, prosecutors allege that Karony and his associates misled investors about critical aspects of the company, including false claims regarding the locking of reserves and the intended use of tokens for specific business purposes.
In reality, the developers retained access to the liquidity pools, diverting millions of dollars” worth of cryptocurrency for their personal benefit, directly contradicting their public assertions.
