New York, NY – Braden John Karony, the 29-year-old co-founder and former CEO of the once-popular cryptocurrency project SafeMoon, has been sentenced to 100 months—approximately 8 years and 4 months—in federal prison. The U.S. Attorney’s Office for the Eastern District of New York announced the sentencing, confirming Karony’s conviction for orchestrating a multi-million dollar scheme that defrauded investors to fuel his extravagant lifestyle.
The Deceptive Promise of “SafeMoon”
Prosecutors revealed that Karony, despite publicly pledging to guide investors “safely to the moon” with his crypto venture, privately treated their investments as his personal ATM. Investigations uncovered that he illicitly diverted over $9 million in digital assets from SafeMoon. These ill-gotten funds were then used to acquire a lavish $2.2 million property in Utah, a high-performance Audi R8 supercar, a Tesla, and a custom-built, expensive Ford F-550 pickup truck.
In addition to his substantial prison term, the court has ordered Karony to forfeit approximately $7.5 million in illegal proceeds, alongside two properties purchased with the defrauded funds. James Barnacle, Assistant Director in Charge of the FBI’s New York Field Office, underscored the severity of the crime in a statement: “Braden John Karony not only abused his executive authority but also fundamentally betrayed the trust of countless investors, siphoning over $9 million in digital assets from the company to sustain a luxurious personal life.”
Conviction and the Unraveling of a Scam
The sentencing follows a federal jury’s unanimous verdict in May of this year, which found Braden John Karony guilty of multiple felony charges, including conspiracy to commit securities fraud, wire fraud, and money laundering.
SafeMoon LLC launched its namesake cryptocurrency in 2021, rapidly attracting a significant following among retail investors. At its zenith, SafeMoon’s market capitalization soared past $8 billion. A primary appeal for investors was its unique “transaction tax” mechanism: a 10% levy applied to all token transfers or trades, with 5% redistributed to existing holders and the remaining 5% channeled into the project’s liquidity pool.
However, prosecutors exposed this seemingly innovative structure as a deliberate deception. Karony and his co-conspirators secretly maintained exclusive control over the liquidity pool. Without any disclosure to investors, they systematically siphoned millions of dollars from this pool for their personal gain, directly contradicting the project’s publicly stated purpose and the promises made to its community.
Co-Conspirators Face Justice
The legal consequences extend beyond Karony, with two other key figures in the SafeMoon fraud also facing severe penalties:
- Thomas Smith (Former CTO): Pleaded guilty in February 2025 and is currently awaiting his sentencing.
- Kyle Nagy (Accomplice): Remains at large, with U.S. judicial authorities actively pursuing his apprehension.
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