Quick Summary:
- Braden Karony, CEO of SafeMoon, found guilty in $2B crypto fraud case
- Convicted of conspiracy to commit securities fraud, wire fraud, and money laundering
- Faces up to 45 years in prison
- Ordered to forfeit properties worth $2 million
- Funds meant for investor protection were misused for luxury purchases
- U.S. Attorney slams SafeMoon as a “fake setup”
- Co-conspirator Thomas Smith has pleaded guilty; Kyle Nagy remains at large
The Fall of SafeMoon’s Founder
In a landmark decision, a federal jury in Brooklyn has found Braden Karony, CEO of SafeMoon, guilty of orchestrating a $2 billion cryptocurrency fraud scheme. Over a 12-day trial overseen by Judge Eric R. Komitee, Karony was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering.
Karony also pleaded guilty to misleading investors, falsely claiming that funds in SafeMoon’s “locked” liquidity pools were secure and strictly used for business purposes. In reality, he and his partners siphoned off millions for personal use.
Luxury Living on Investor Funds
According to the U.S. Department of Justice, Karony misused investor money to finance a lavish lifestyle. He purchased a $2.2 million home in Utah, high-end vehicles like an Audi R8, Tesla, and custom trucks—all while SafeMoon investors were led to believe their funds were protected.
The fraud exploited a 10% transaction fee on every SafeMoon trade, a mechanism that was supposedly designed to benefit holders. Instead, Karony secretly traded SafeMoon to amass millions in personal profits.
“A Fake Setup That Stole From Investors”
U.S. Attorney Joseph Nocella, Jr. didn’t mince words, stating:
“SafeMoon was a fake setup that stole from investors and harmed the cryptocurrency market.”
His strong remarks echo the growing concerns over regulatory gaps in the crypto space.
What’s Next for the Co-Conspirators?
- Thomas Smith, one of Karony’s partners, has already pleaded guilty and awaits sentencing.
- Kyle Nagy, the third figure in the scandal, is currently on the run.
As the crypto world reels from yet another high-profile case, this verdict underscores the urgent need for transparency and accountability in blockchain-based projects.