Former SafeMoon CEO Braden Karony Sentenced to 100 Months for Crypto Fraud Scheme

Braden John Karony, the former CEO of SafeMoon, has been sentenced to 100 months in federal prison by the United States District Court in Brooklyn. The 29-year-old from Utah was found guilty in May 2025 on charges including conspiracy to commit securities fraud, wire fraud, and money laundering. 

The official press release states that the judge has ordered him to forfeit approximately $7.5 million and two residential properties. Notably, the amount for victim restitution is still to be determined. The ruling follows a three-week trial and underscores the growing scrutiny of crypto projects that make misleading claims.

Details of the Fraud Scheme 

SafeMoon was launched in 2021 as a decentralized finance token. It promised investors rewards through “reflections” and locked liquidity to establish trust. CEO John Karony aggressively marketed these features while secretly tapping into the liquidity pool for personal gain. He drained significant amounts of digital assets, ultimately purchasing luxury real estate and vehicles for himself. 

Co-conspirators Kyle Nagy, who is still at large, and former CTO Thomas Smith, who pleaded guilty earlier in 2025, also joined in misappropriating the funds. The project’s deceptive marketing made the token appear more attractive. This enticed thousands of investors who later suffered devastating losses when the project’s value plummeted following these revelations. 

Federal investigators from the IRS Criminal Investigation Division and the FBI traced the laundered proceeds and documented manipulated transactions. Prosecutors stressed that the scheme was not a legitimate innovation but outright theft, causing significant harm to victims who lost their life savings and retirement funds.

Karony Gets 100-Month Sentencing

The case took place in the Eastern District of New York, presided over by Judge Eric Komitee. After a lengthy 12-day trial, a jury found Karony guilty on all charges. The verdict left him facing a potential maximum sentence of 45 years. Although the government suggested a 12-year term, the judge ultimately imposed a 100-month sentence. 

Meanwhile, victim impact statements highlighted significant financial ruin, which played a crucial role in shaping the court’s decision. The ruling also includes three years of supervised release following Karony’s imprisonment. 

“Karony lied to investors from all walks of life—including military veterans and hard working-Americans—and defrauded thousands of victims in order to buy mansions, sports cars, and custom trucks. Today’s sentence demonstrates that there are significant consequences for financial crimes. Our Office will continue to vigorously prosecute economic crimes that harm investors and weaken societal trust in the stability and security of digital asset markets,” United States Attorney Nocella stated

This high-profile conviction highlights the increased regulatory scrutiny in the crypto industry and sends a strong message to developers and promoters to avoid misrepresenting their projects or misusing funds. 

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