A federal judge sentenced SafeMoon’s former CEO to over eight years in prison for fraud, while convicted FTX founder Sam Bankman-Fried filed a new motion for a trial. The developments show two major cryptocurrency fraud cases moving in opposite directions within the U.S. legal system.
A federal judge in New York sentenced John Karony, former CEO of SafeMoon, to 100 months in prison. The sentencing followed victim testimony describing how their financial futures were harmed by the scheme.
Prosecutors had sought a 12-year sentence, arguing Karony showed no remorse. The judge described the scheme as “a massive fraud” and stated it was “more like theft than fraud.”
In a separate case, Sam Bankman-Fried filed a pro se motion seeking a new trial on his FTX fraud conviction. The filing argues new witness testimony could undermine the government’s case, according to Bloomberg.
Bankman-Fried was convicted in November 2023 and sentenced in March 2024 to 25 years in prison. Prosecutors said he misappropriated billions in customer funds for trading, donations, and real estate.
The cases highlight how high-profile crypto prosecutions are diverging. The SafeMoon case has reached sentencing, while the FTX case continues with post-conviction motions.
The Second Circuit court previously rejected Bankman-Fried’s attempt to secure release pending appeal. It ruled he had not demonstrated a substantial likelihood of success on his formal appeal.
