Former SafeMoon CEO Braden Karony Sentenced to 8 Years in Federal Crypto Fraud Case

Former SafeMoon CEO Braden John Karony has been sentenced to more than eight years in prison following his conviction on multiple federal charges related to a large-scale cryptocurrency fraud scheme. The 100-month prison sentence was handed down Tuesday in the U.S. District Court for the Eastern District of New York, marking a major enforcement action in one of the most high-profile crypto fraud cases in recent years.

Karony, who led the now-defunct Utah-based digital asset project SafeMoon, was convicted last year after a three-week federal trial. Prosecutors found him guilty of conspiracy to commit securities fraud, wire fraud, and money laundering. In addition to prison time, the court ordered Karony to forfeit $7.5 million along with two residential properties tied to the illicit proceeds of the scheme.

According to the U.S. Department of Justice, Karony played a central role in manipulating the price of the SafeMoon token while secretly controlling liquidity pools that were publicly marketed as locked and secure. Authorities said this allowed Karony and his co-conspirators to drain millions of dollars from investors while presenting SafeMoon as a legitimate and transparent crypto project.

U.S. Attorney Nocella said Karony deceived investors from diverse backgrounds, including military veterans and everyday retail traders, using the funds to purchase luxury mansions, high-end sports cars, and custom vehicles. Prosecutors emphasized that the case highlights the government’s continued focus on policing fraud and misconduct in digital asset markets.

The SafeMoon case also involves other key figures. Co-conspirator Thomas Smith pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud, though sentencing has not yet occurred. Another alleged participant, Kyle Nagy, remains at large and is still being sought by federal authorities.

The conviction and sentencing of Braden Karony underscore growing regulatory scrutiny and criminal enforcement in the cryptocurrency industry, particularly involving token manipulation, investor deception, and misuse of liquidity pools.