Braden John Karony, the former CEO of SafeMoon US LLC, has been sentenced to 100 months (eight years and four months) in federal prison for his role in a multi-million dollar cryptocurrency fraud scheme. The sentencing, handed down by a federal judge in Brooklyn, New York, follows Karony's conviction in May 2025 on charges of conspiracy to commit securities fraud, wire fraud, and money laundering. In addition to the prison term, Karony was ordered to forfeit approximately $7.5 million. The amount of restitution to be paid to victims will be determined at a later date.
SafeMoon, a digital asset company registered in Utah, launched the SafeMoon token in March 2021. The token quickly gained traction, reaching a market capitalization of over $8 billion at its peak. It was marketed as a decentralized cryptocurrency with rewards for holders. However, prosecutors argued that Karony and his co-conspirators misled investors about the token's design and the security of their investments.
Prosecutors detailed how Karony and others falsely claimed that liquidity pools were "locked" and inaccessible to insiders, and that SafeMoon's 10% transaction tax would prevent "rug pulls". They also misrepresented that developers did not hold or trade SafeMoon tokens. Contrary to these claims, Karony and his co-conspirators retained full access to the liquidity pools and diverted millions of dollars for their personal enrichment. They repeatedly bought and sold SafeMoon tokens at market peaks and concealed their movement of funds through private crypto wallets and pseudonymous exchange accounts.
Karony acquired over $9 million in crypto assets through the scheme. He used these funds to purchase luxury vehicles, including multiple Audi R8s, a Tesla, and custom Ford and Jeep pickup trucks, as well as real estate, including a $2.2 million home in Utah and additional properties in Utah and Kansas.
During the sentencing hearing, victims described how their investments in SafeMoon, based on Karony's assurances, significantly impacted their financial futures, preventing home purchases and affecting education plans. Prosecutors sought a 12-year sentence, arguing that Karony deliberately misled investors and showed no remorse. The defense cited Karony's age and background in an attempt to mitigate the punishment. However, the judge rejected these arguments, describing the scheme as "a massive fraud" and emphasizing that it was "more like theft than fraud".
The case also involves other individuals. Thomas Smith, SafeMoon's former chief technology officer, pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud and is awaiting sentencing. Kyle Nagy, another alleged co-conspirator, remains at large. U.S. Attorney Joseph Nocella stated that Karony provided false information to countless investors, including service members and ordinary workers, creating thousands of victims. He added that authorities would "respond forcefully to economic crimes that undermine trust in the digital asset market".