A US court has announced it has sentenced Braden John Karony, the former CEO of the cryptocurrency project SafeMoon, to eight years in prison.
Braden John Karony, the former CEO of cryptocurrency company SafeMoon (SFM), was on trial for securities fraud, electronic fraud, and money laundering for embezzling millions of dollars worth of SFM tokens between 2021 and 2022.
The court ruling determined that Karony embezzled millions of dollars by manipulating the token price and illegally controlling liquidity pools at the bankrupt Utah-based company SafeMoon.
The court stated that as a result of the trial, Karony was sentenced to 100 months in prison, ordered to pay $7.5 million in restitution, and had two of his properties confiscated.
U.S. Attorney General Joseph Nocella stated, “Karony lied to investors from all walks of life, including military veterans and hardworking Americans, and defrauded thousands of victims into buying mansions, sports cars, and custom-built trucks. Today’s sentencing demonstrates the significant consequences of financial crimes. Our office will continue to vigorously prosecute economic crimes that harm investors and undermine public confidence in the stability and security of digital asset markets.”
FBI Deputy Director James C. Barnacle, Jr. stated, “Braden John Karony not only abused his position as CEO, but also violated the trust of his investors by stealing more than nine million dollars in digital assets from his company to finance his lavish lifestyle.”
Aside from CEO Braden John Karony, co-founder Thomas Smith, who is also facing charges of the same crimes, pleaded guilty in February 2025 to participating in a conspiracy to commit securities fraud and electronic fraud, but his sentence has not yet been determined. Another partner, Kyle Nagy, is reportedly currently at large.
*This is not investment advice.