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Crypto Dream Turns Nightmare As SafeMoon CEO Gets 100 Months In Jail

Braden John Karony, the one-time CEO of SafeMoon, has been sentenced to 100 months in US federal jail after a jury discovered him responsible of a number of fraud counts.

According to courtroom information and Justice Department statements, he was convicted on fees that included securities fraud, wire fraud, and cash laundering.

Reports say prosecutors proved that traders have been instructed liquidity was safe when it was not, and that insiders have been capable of transfer funds for private acquire.

“Not solely did Braden John Karony abuse his place as CEO, however he additionally betrayed his traders’ belief by stealing over $9 million in crypto from his firm to fund his lavish life-style,” James C. Barnacle, Jr., FBI assistant director, mentioned.

SafeMoon: False Locks And Hidden Transfers

Reports observe that Karony and others instructed consumers that SafeMoon’s liquidity swimming pools have been “locked,” a declare that calmed many who put cash into the token. Instead, prosecutors confirmed how greater than $9 million was diverted from these swimming pools.

He used a few of the cash to purchase high-end houses and automobiles. The FBI described the strikes as deliberate. Victims included small traders and folks on modest incomes. Some misplaced financial savings. It left belief badly shaken.

According to US Attorney Joseph Nocella, Jr. Karony “lied to traders from all walks of life — together with army veterans and hard-working Americans.”

The Trial And Conviction

The trial ran for 3 weeks in May 2025. A jury returned responsible verdicts throughout the board. Based on stories, sentencing was dealt with by US District Judge Eric Komitee within the Eastern District of New York.

The Justice Department sought a stiff time period, and the court docket obliged. One former govt, Thomas Smith, has pleaded responsible and faces his personal punishment.

Other co-founders are nonetheless underneath scrutiny. Reports say authorities will press to recuperate funds via forfeiture and restitution orders.

Ruined Lives & Lost Money

People who backed SafeMoon typically did so as a result of they believed within the venture or needed a brand new technique to make investments. Many discovered the arduous means that guarantees in promo posts and social feeds can disguise actual risks.

Some traders watched balances drop. Others tried to observe the paper path and grew alarmed when transfers led to non-public financial institution accounts and luxurious purchases. The case uncovered how shortly belief can evaporate when controls fail.

Restitution And Future Cases

The court docket ordered forfeiture of about $7.5 million, however the full scale of losses continues to be being labored out in follow-up hearings. Restitution proceedings will purpose to return cash to victims, however such processes can take time.

Law enforcement within the US has signaled a gradual curiosity in crypto fraud prosecutions. That means extra investigations and, doubtless, extra court docket dates for these accused of comparable schemes.

Featured picture from John Karony – Medium, chart from TradingView

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