SafeMoon CEO Sentenced to Over 8 Years as Judge Calls Scheme “Theft”
A US federal choose sentenced Braden John Karony, the previous CEO of SafeMoon, to 100 months in jail, following his conviction for fraud tied to the collapse of the once-hyped Solana token.
US District Judge Eric Komitee delivered the sentence after listening to emotional sufferer testimony and forceful arguments from prosecutors, who accused Karony of exploiting investor belief whereas secretly diverting funds.
The courtroom additionally scheduled a separate listening to on restitution and monetary penalties for April 23.
“This Was a Massive Fraud”: Judge Rejects Defense Pleas
During sentencing, Judge Komitee dismissed protection arguments that Karony’s age and background ought to mitigate his punishment.
“This was a large fraud,” the choose stated, including that Karony and his co-conspirators “went to nice pains to earn the belief” of traders by repeatedly assuring them {that a} rug pull was unimaginable.
Victims described dropping life financial savings, promoting private property, and delaying residence possession and training plans.
Several stated they invested as a result of Karony made himself extremely seen and reliable, contrasting him with Bitcoin’s anonymous creator.
Prosecutors sought a 12-year sentence, arguing Karony confirmed no regret and understood the consequences of mendacity to traders.
The choose in the end imposed a shorter however nonetheless substantial sentence of 8 years and 4 months.
How SafeMoon Collapsed
SafeMoon launched in 2021 with guarantees of long-term rewards and a “locked” liquidity pool that executives claimed couldn’t be accessed.
Federal prosecutors later alleged that these claims had been false.
According to the case, insiders retained management over the liquidity and misappropriated tens of millions of {dollars}, whereas publicly assuring traders their funds had been secure.
Authorities stated Karony personally benefited from diverted property whereas persevering with to promote the token and deny any threat of a rug pull.
The prosecution framed the scheme as deliberate deception, not mismanagement or market failure. A jury agreed, convicting Karony on fraud-related counts earlier this 12 months.
With at present’s sentence, the SafeMoon case joins a rising record of crypto prosecutions the place courts have handled damaged belief and liquidity abuse as prison theft, not innovation gone improper.
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