SafeMoon CEO Given 8-Year Jail Time Over Crypto Scam

Former SafeMoon CEO Braden Karony has been sentenced to 100 months in prison for stealing $9 million from the crypto platform’s liquidity pool in 2021 to fund a “lavish lifestyle.”

The sentence on Monday comes nine months after Karony was convicted by a federal jury on charges of conspiracy to commit securities fraud, wire fraud and money laundering in May 2025. 

“Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company to fund his lavish lifestyle,” FBI assistant director James C. Barnacle, Jr. said.

Karony used the stolen proceeds to purchase a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, a custom Ford F-550 and Jeep Gladiator pickup trucks.

“Karony lied to investors from all walks of life — including military veterans and hard-working Americans,” US Attorney Joseph Nocella, Jr. said, adding:

“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.”

Karony was ordered to forfeit approximately $7.5 million, the Department of Justice said, while the amount of restitution to the victims will be determined at a later date. 

Two SafeMoon execs convicted, one at large

SafeMoon’s former chief technology officer, Thomas Smith, pleaded guilty in February 2025 to conspiracy to commit securities and wire fraud and is awaiting sentencing.

SafeMoon platform’s creator, Kyle Nagy, remains at large, the DOJ added.

Karony is one of many former crypto executives who have now been convicted and sentenced for crimes committed during the 2021-2022 market cycle, when retail market participation was at its peak.