Braden John Karony, the onetime CEO and founder of SafeMoon, has been sentenced to 100 months (8 years, 4 months) in federal prison after a jury convicted him of securities fraud, wire fraud and money laundering. What happened - A three‑week trial in May 2025 ended in guilty verdicts on multiple counts. U.S. District Judge Eric Komitee (Eastern District of New York) imposed the 100‑month term after prosecutors pushed for a substantial sentence. - Court records and Justice Department statements say prosecutors proved Karony misled investors about SafeMoon’s liquidity — repeatedly claiming liquidity pools were “locked” — while diverting more than $9 million from those pools to fund a lavish lifestyle. The diverted funds were allegedly used to buy high‑end homes and vehicles. - The FBI characterized the conduct as deliberate theft from investors, many of whom were small‑scale buyers and people on modest incomes, including military veterans. “Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing over $9 million in crypto from his company to fund his lavish lifestyle,” said FBI Assistant Director James C. Barnacle, Jr. U.S. Attorney Joseph Nocella, Jr. added that Karony “lied to investors from all walks of life.” Legal and financial fallout - The court ordered forfeiture of roughly $7.5 million. Restitution and the full scale of investor losses remain under review in follow‑up hearings; recovering crypto assets can be complex and time‑consuming. - One former SafeMoon executive, Thomas Smith, has pleaded guilty and faces his own penalties. Other co‑founders and associates remain under scrutiny as authorities pursue forfeiture and restitution. - The Justice Department’s handling of the case underscores ongoing U.S. enforcement attention on crypto fraud; observers expect more investigations and prosecutions of allegedly deceptive token projects. Why it matters - The case highlights persistent risks in the crypto space: promotional claims (for example, that liquidity is “locked”) can lull retail investors into a false sense of security. When insiders retain the ability to move funds, retail holders can suffer major losses. - For investors and builders alike, the ruling is a reminder of the legal and reputational consequences of misrepresenting project safeguards and of the importance of transparent governance and custody practices. Image credit: John Karony – Medium; chart: TradingView. Read more AI-generated news on: undefined/news