Braden Karony, former CEO of SafeMoon, has been sentenced to 100 months in federal prison for his role in a crypto fraud involving the project’s liquidity pool.
A jury convicted Karony of securities fraud, wire fraud, and money laundering after prosecutors showed he misappropriated investor funds while claiming they were “locked.”
Karony personally withdrew over $9 million in crypto and engaged in manipulative trading to boost the price of the SFM token. The funds were taken from wallets portrayed as untouchable.
U.S. District Judge Eric Komitee handed down the sentence in the Eastern District of New York after a hearing that balanced defense claims about Karony’s upbringing with testimony from victims describing significant financial losses.
SafeMoon launched in 2021 on the BNB Chain, marketing itself as a community-driven DeFi token with a 10% transaction fee model. At its peak in April 2021, amid heavy influencer promotion, the token reached a multibillion-dollar market cap.
Regulators said the team used investor funds for personal gain while assuring users the assets were secure. In November 2023, the SEC and DOJ filed charges outlining undisclosed wallet control and fund diversion. The project filed for Chapter 7 bankruptcy a month later, and the token became largely illiquid.
Thomas Smith, SafeMoon’s former CTO, pleaded guilty in 2025 to related conspiracy charges. His plea confirmed that the team misled investors and siphoned liquidity-pool assets.
Karony’s conviction marks one of the most visible criminal cases involving a meme coin. Prosecutors argued the project exploited DeFi hype and investor trust to execute what amounted to coordinated theft under the guise of decentralized finance.