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Crypto Potato 2025-05-24 17:12:47

SafeMoon CEO Braden Karony Found Guilty of Fraud and Money Laundering

SafeMoon CEO Braden Karony Found Guilty of Fraud and Money Laundering

A federal jury in Brooklyn has found Braden John Karony, former CEO of SafeMoon, guilty of conspiracy to commit securities fraud, wire fraud, and money laundering. The conviction follows an extensive 12-day trial and an 18-month investigation into one of the most high-profile crypto fraud cases in recent memory. Prosecutors alleged that Karony and his associates deliberately deceived investors by falsely claiming SafeMoon’s liquidity pool was locked and untouchable, when in reality, they were stealing millions from it to fund a lavish lifestyle. According to the official press release by the DOJ, evidence presented in court revealed that Karony used investor funds to purchase luxury vehicles, including an Audi R8 and a Tesla, as well as multimillion-dollar real estate in Utah. While Karony maintained that liquidity funds could be accessed only in emergencies, testimony from SafeMoon’s former CTO, Thomas Smith, who took a plea deal, painted a picture of calculated deception. Smith admitted the executive team routinely coordinated public statements to cover their tracks and manipulate investor sentiment, all while personally trading SafeMoon tokens in ways that influenced the asset’s price. Karony’s conviction also includes the forfeiture of at least $2 million worth of assets, including residential properties. With sentencing looming, he faces a maximum of 45 years in prison. US Attorney Joseph Nocella described SafeMoon as a “front for theft” and Karony as someone who “lined the driveways of his million-dollar homes with luxury cars.” While Smith awaits sentencing and Kyle Nagy, the project’s elusive founder, remains at large. In an official statement, HSI New York Acting Special Agent in Charge McCormack said, “Steered by his selfish desires and insatiable greed, Braden John Karony treated millions of dollars in investors’ funds as his own personal bank account. The defendant will soon be trading his sprawling real estate and luxury vehicles for a jail cell within the four walls of a federal penitentiary.” Safemoon had filed for Chapter 7 bankruptcy in December 2023. The post SafeMoon CEO Braden Karony Found Guilty of Fraud and Money Laundering appeared first on CryptoPotato .

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