Braden John Karony, former CEO of SafeMoon, was sentenced to 100 months in prison after being convicted of taking more than $9 million in cryptocurrency from the project’s liquidity pool in 2021 to pay for personal luxuries.
The sentencing was handed down on February 10, after his conviction in May 2025 on charges including conspiracy to commit securities fraud, wire fraud, and money laundering.
According to federal prosecutors, Karony used investor money to buy luxury items. Notable purchases included a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, and custom Ford F-550 and Jeep Gladiator trucks.
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The court ordered Karony to forfeit about $7.5 million. The exact amount that will be returned to victims will be decided at a later date.
FBI Assistant Director James C. Barnacle Jr. noted that Karony betrayed people who relied on him. United States Attorney Joseph Nocella Jr. stressed that fraud in digital currency will meet real penalties.
SafeMoon started with a 10% transaction fee, split evenly between holders and the liquidity pool. Investors were told the funds were locked, but in fact, insiders could access and misuse them.
Thomas Smith, formerly SafeMoon’s chief technology officer, pleaded guilty to related charges in February 2025 and is awaiting his sentence. The project’s creator, Kyle Nagy, has not been located by authorities.
Recently, Daren Li received a 20-year sentence in the US for a crypto fraud scheme that defrauded victims worldwide of over $73 million. How did the case unfold? Read the full story.
