Former SafeMoon CEO Braden John Karony will face an 8-year prison sentence after being convicted last year of a series of federal charges related to defrauding investors in his digital assets business.
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 of all stripes – including American veterans and workers – and defrauded thousands of victims to purchase custom mansions, sports cars and trucks,” U.S. Attorney Nocella said in a statement. “Our office will continue to vigorously pursue economic crimes that harm investors and undermine society’s confidence in the stability and security of digital asset markets.”
Karony allegedly participated in manipulating the price of the SafeMoon token and illicitly controlling the bankrupt Utah-based company’s liquidity pools in order to drain millions of dollars, according to the Justice Department. After a three-week trial, he was convicted of conspiracy to commit securities fraud, wire fraud and money laundering.
One of the co-conspirators, 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 DOJ in fraud investigation and charged by SEC
