Ex-SafeMoon CEO Braden Karony Sentenced to 8 Years for Crypto Fraud

Braden John Karony, the former Chief Executive Officer of SafeMoon, has been sentenced to eight years in prison after being found guilty of defrauding investors in his digital asset business.

Eight-Year Sentence and Asset Forfeiture

On Tuesday, Karony was handed a 100-month prison term following a three-week federal trial in May 2025, during which a jury found him guilty of financial and electronic fraud, as well as money laundering. In addition to his prison term, the court ordered him to forfeit two residential properties and approximately $7.5 million, according to the U.S. Attorney’s Office for the Eastern District of New York.

United States Attorney Nocella stated that Karony targeted investors from a wide range of backgrounds, deceiving thousands in the process. He added that the ill-gotten gains funded a lavish lifestyle that included luxury homes, high-end vehicles, and custom trucks, emphasizing that federal prosecutors remain committed to pursuing financial crimes that harm investors and undermine trust in cryptocurrency markets.

The scope of Karony’s misconduct extended even further, according to FBI Assistant Director in Charge James Barnacle, who noted that Karony misappropriated more than $9 million in digital assets from SafeMoon for personal use.

Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company to fund his lavish lifestyle. The FBI is committed to addressing fraud in the digital asset marketplace to level the playing field for Americans.

James Barnacle

How the SafeMoon Fraud Unfolded

Evidence presented at trial showed that Karony and his co-conspirators repeatedly assured investors that SafeMoon’s liquidity pool was secure, company funds would not be used for personal gain, and insiders were not trading the token. However, prosecutors demonstrated that these claims were false, revealing that:

• The group continued to access liquidity funds, diverting millions of dollars for personal expenses.
• They traded SafeMoon tokens while publicly denying such activity, misleading investors and manipulating the market.
• The group routed the proceeds through complex cryptocurrency transactions to conceal their gains, with Karony personally obtaining more than $9 million, which he used to purchase luxury properties and high-end vehicles.

Thomas Smith, one of Karony’s associates, pleaded guilty in February 2025 to participating in a scheme that defrauded investors through fraudulent securities transactions and electronic communications and is now awaiting sentencing. Kyle Nagy, another alleged participant, remains at large and is actively being sought by authorities.

Meanwhile, HSI New York Acting Special Agent in Charge Alfonso stated that the agency, in coordination with law enforcement partners, will continue efforts to hold accountable anyone who abuses investor trust, whether through conventional financial channels or cryptocurrency.