Braden Karony, former CEO of SafeMoon, has been sentenced to 100 months in federal jail for his position in a crypto fraud involving the challenge’s liquidity pool.
A jury convicted Karony of securities fraud, wire fraud, and cash laundering after prosecutors confirmed he misappropriated investor funds whereas claiming they had been “locked.”
Karony personally withdrew over $9 million in crypto and engaged in manipulative buying and selling to spice up the value of the SFM token. The funds had been taken from wallets portrayed as untouchable.
U.S. District Choose Eric Komitee handed down the sentence within the Japanese District of New York after a listening to that balanced protection claims about Karony’s upbringing with testimony from victims describing vital monetary losses.
SafeMoon launched in 2021 on the BNB Chain, advertising itself as a community-driven DeFi token with a ten% transaction price mannequin. At its peak in April 2021, amid heavy influencer promotion, the token reached a multibillion-dollar market cap.
Regulators stated the staff used investor funds for private acquire whereas assuring customers the property had been safe. In November 2023, the SEC and DOJ filed prices outlining undisclosed pockets management and fund diversion. The challenge filed for Chapter 7 chapter a month later, and the token turned largely illiquid.
Thomas Smith, SafeMoon’s former CTO, pleaded responsible in 2025 to associated conspiracy prices. His plea confirmed that the staff misled traders and siphoned liquidity-pool property.
Karony’s conviction marks one of the crucial seen legal circumstances involving a meme coin. Prosecutors argued the challenge exploited DeFi hype and investor belief to execute what amounted to coordinated theft beneath the guise of decentralized finance.
