Braden Karony, former CEO of SafeMoon, has been sentenced to 100 months in federal jail for his function in a crypto fraud involving the undertaking’s liquidity pool.
A jury convicted Karony of securities fraud, wire fraud, and cash laundering after prosecutors confirmed he misappropriated investor funds whereas claiming they had been “locked.”
Karony personally withdrew over $9 million in crypto and engaged in manipulative buying and selling to spice up the worth of the SFM token. The funds had been taken from wallets portrayed as untouchable.
U.S. District Decide Eric Komitee handed down the sentence within the Jap District of New York after a listening to that balanced protection claims about Karony’s upbringing with testimony from victims describing vital monetary losses.
SafeMoon launched in 2021 on the BNB Chain, advertising and marketing itself as a community-driven DeFi token with a ten% transaction payment mannequin. At its peak in April 2021, amid heavy influencer promotion, the token reached a multibillion-dollar market cap.
Regulators stated the crew used investor funds for private achieve whereas assuring customers the property had been safe. In November 2023, the SEC and DOJ filed prices outlining undisclosed pockets management and fund diversion. The undertaking filed for Chapter 7 chapter a month later, and the token grew to become largely illiquid.
Thomas Smith, SafeMoon’s former CTO, pleaded responsible in 2025 to associated conspiracy prices. His plea confirmed that the crew misled buyers and siphoned liquidity-pool property.
Karony’s conviction marks some of the seen felony instances involving a meme coin. Prosecutors argued the undertaking exploited DeFi hype and investor belief to execute what amounted to coordinated theft below the guise of decentralized finance.
