Braden John Karony, the CEO behind the previously viral SafeMoon venture, has been sentenced to 100 months, over eight years, in federal jail.
Whereas he marketed SafeMoon as a revolutionary token that was “safely” locked away from unhealthy actors, prosecutors proved he used investor funds to bankroll a lavish life-style, deceiving holders who believed they had been a part of a safe decentralized finance (DeFi) revolution.
🚨JOHN KARONY, CEO OF SAFEMOON GETS 8 YEARS (100 MONTHS) IN PRISON.
Reported on this 3 years in the past. pic.twitter.com/TOA02ARWTG
— Coffeezilla (@coffeebreak_YT) February 10, 2026
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What Is SafeMoon And Why Does It Matter?
Launched in early 2021, SafeMoon blew up quick and briefly hit an $8B market cap. It attracted many learners with the promise of “locked liquidity,” that means the devs claimed they might not contact the funds and that the venture was secure.
Who’s sufficiently old to recollect SafeMoon? https://t.co/JI6PRJvPDO
— Okay A L E O (@CryptoKaleo) February 10, 2026
In actuality, that safety was largely an phantasm. The workforce nonetheless had entry to the liquidity and quietly drained tens of millions for themselves. The hype made it look safe on the floor, however beneath, the dangers had been at all times there.
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How The “Protected” Scheme Unraveled
Throughout sentencing in a Brooklyn federal court docket, it got here out that Karony and his co-conspirators misappropriated over $200M. Karony personally pocketed tens of millions whereas spending investor cash on luxurious objects similar to a $2.2M house in Utah, an Audi R8, and customized vehicles.
Prosecutors had been blunt about how unhealthy the fraud was. U.S. Lawyer Joseph Nocella Jr. stated the asset was “something however secure,” and that buyers had been intentionally misled.
Do not forget that one time when Safemoon employed an actual actor because the Chief of Employees and everybody thought it was a good suggestion? lol pic.twitter.com/mw1GJk7ppA
— DahmnSon.eth (@DahmnSon1) February 10, 2026
The case suits right into a broader crackdown on crypto fraud, with authorities making it clear that hiding behind blockchain anonymity is not going to cease jail time.
Whereas prosecutors pushed for a 12-year sentence, the decide in the end handed Karony a sentence of simply over 8 years, adopted by 3 years of supervised launch. A separate listening to to find out how a lot he should repay victims is ready for April 23.
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