Braden John Karony, former CEO of SafeMoon, was sentenced to 100 months in jail after being convicted of taking greater than $9 million in cryptocurrency from the undertaking’s liquidity pool in 2021 to pay for private luxuries.
The sentencing was handed down on February 10, after his conviction in Could 2025 on costs together with conspiracy to commit securities fraud, wire fraud, and cash laundering.
Based on federal prosecutors, Karony used investor cash to purchase luxurious gadgets. Notable purchases included a $2.2 million house in Utah, an Audi R8 sports activities automobile, a Tesla, and customized Ford F-550 and Jeep Gladiator vehicles.
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The court docket ordered Karony to forfeit about $7.5 million. The precise quantity that shall be returned to victims shall be determined at a later date.
FBI Assistant Director James C. Barnacle Jr. famous that Karony betrayed individuals who relied on him. United States Legal professional Joseph Nocella Jr. confused that fraud in digital foreign money will meet actual penalties.
SafeMoon began with a ten% transaction payment, break up evenly between holders and the liquidity pool. Traders had been instructed the funds had been locked, however in truth, insiders may entry and misuse them.
Thomas Smith, previously SafeMoon’s chief know-how officer, pleaded responsible to associated costs in February 2025 and is awaiting his sentence. The undertaking’s creator, Kyle Nagy, has not been situated by authorities.
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