- Braden John Karony, CEO of SafeMoon, has been found guilty on all charges of securities fraud, wire fraud, and money laundering
- The jury determined Karony misled investors about access to SafeMoon’s liquidity pool and diverted millions for personal use
- Karony faces up to 45 years in prison, with sentencing scheduled for a later date
Braden Karony, the CEO of cryptocurrency company SafeMoon, has been convicted on all counts in a federal court for orchestrating a multi-million dollar fraud scheme. The charges include conspiracy to commit securities fraud, wire fraud, and money laundering. Prosecutors revealed that Karony misrepresented the security of investor funds and misused them for personal expenditures, including luxury real estate and vehicles.
Misrepresentation and Misuse of Funds
During the trial, evidence showed that Karony and his co-conspirators falsely assured investors that SafeMoon’s liquidity pool was inaccessible to company executives, promoting it as a secure investment. Contrary to these claims, Karony had full access and diverted substantial amounts for personal gain. In a press release following his conviction, United States Attorney Nocella stated, “The SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony.”
Karony and his associates misled investors about key aspects of the SafeMoon cryptocurrency project, falsely claiming that its liquidity pools were locked and secure from insider tampering. They assured investors that a 10% transaction tax would grow these pools automatically and that neither they nor other developers held or traded SafeMoon tokens for personal gain. In reality, the defendants retained full access to the liquidity pools and used them to siphon off millions of dollars for their own enrichment.
45-Year Prison Sentence Beckons
Despite public denials, Karony and his co-conspirators actively traded SafeMoon for profit—often during price surges—and disguised the proceeds through a complex network of untraceable wallets and pseudonymous accounts. Karony alone netted over $9 million from the scheme, using the funds to purchase multiple properties in Utah and Kansas, luxury vehicles like a $277,000 Audi R8, and custom trucks.
Karony’s conviction follows a 12-day trial in the Eastern District of New York, the conclusion of which leaves Karony facing a maximum sentence of 45 years in prison. The court has also ordered the forfeiture of assets acquired through the fraudulent scheme, including a residential property and proceeds from another sale totaling approximately $2 million.
