Former SafeMoon CEO Braden John Karony will face an 8-year prison sentence after being found guilty last year on a series of federal charges related to defrauding investors in his digital asset operation.
The 100-month sentence was handed down Tuesday in the U.S. District Court for the Eastern District of New York, and Karony must also forfeit $7.5 million and two residences in the case.
“Karony lied to investors from all walks of life, including military veterans and hard-working Americans, and defrauded thousands of victims into buying mansions, sports cars, and custom trucks,” U.S. Attorney Nocella said in a statement. “Our office will continue to vigorously prosecute economic crimes that harm investors and undermine society’s confidence in the stability and security of digital asset markets.”
Karony is said to have participated in manipulating the price of the SafeMoon token and illicitly controlling liquidity pools at the failed Utah-based company to drain millions of dollars, according to the Department of Justice. After a three-week trial, he was found guilty of conspiracy to commit securities fraud, wire fraud, and money laundering.
An accomplice, Thomas Smith, also pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud, although he has not yet been sentenced. Another alleged SafeMoon conspirator, Kyle Nagy, is still wanted by authorities.
Read more: SafeMoon executives arrested by Justice Department in fraud investigation, charged by SEC
