Former SafeMoon CEO Braden Karony has been sentenced to 100 months, or over eight years, in prison for stealing $9 million from the crypto project’s liquidity pool. The U.S. Department of Justice stated Karony used the funds for personal luxury purchases, including real estate and vehicles. He was convicted on charges of conspiracy to commit securities fraud, wire fraud, and money laundering.
Former SafeMoon CEO Braden Karony has been sentenced to 100 months in prison for stealing $9 million from the platform’s liquidity pool in 2021. The sentence follows his conviction on charges of conspiracy to commit securities fraud, wire fraud, and money laundering nine months prior.
Karony used the stolen digital assets to fund what authorities described as a “lavish lifestyle.” His purchases included a $2.2 million home in Utah, an Audi R8 sports car, a Tesla, and custom pickup trucks.
FBI assistant director James C. Barnacle, Jr. stated Karony “betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company.” U.S. Attorney Joseph Nocella, Jr. emphasized the case targeted investors “from all walks of life — including military veterans and hard-working Americans.”
The Department of Justice said Karony was ordered to forfeit approximately $7.5 million. The precise amount of victim restitution will be determined at a later date.
Two other SafeMoon executives were implicated in the scheme. Former chief technology officer Thomas Smith pleaded guilty to conspiracy charges and awaits sentencing.
The platform’s creator, Kyle Nagy, remains at large according to the DOJ. Karony’s sentencing is part of a wave of convictions for crypto executives from the 2021-2022 market cycle.
Others convicted include former FTX CEO Sam Bankman-Fried and former Celsius CEO Alex Mashinsky, serving 25-year and 12-year sentences respectively. Bankman-Fried recently requested a new trial via a federal appeals panel.
