Former SafeMoon CEO receives 100-month prison term for $9M cryptocurrency theft
Braden Karony, who previously served as SafeMoon's chief executive, will spend 100 months behind bars after being convicted of misappropriating more than $9 million from investors to support an extravagant personal lifestyle.
Braden Karony, the former chief executive officer of SafeMoon, has received a prison term of 100 months for misappropriating $9 million from the cryptocurrency platform's liquidity pool during 2021, funds which he used to support a "lavish lifestyle."
Monday's sentencing arrives nine months following Karony's conviction by a federal jury on charges including conspiracy to commit securities fraud, wire fraud and money laundering back 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.
The misappropriated funds were utilized by Karony to acquire a $2.2 million residential property 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."
According to the Department of Justice, Karony has been ordered to forfeit approximately $7.5 million, with the specific amount of victim restitution to be established at a future date.
Two SafeMoon execs convicted, one at large
Thomas Smith, SafeMoon's former chief technology officer, entered a guilty plea to conspiracy to commit securities fraud and wire fraud during February 2025 and currently awaits sentencing.
Kyle Nagy, the creator of the SafeMoon platform, continues to remain at large, according to the DOJ.
Karony joins a growing list of former cryptocurrency executives who have now faced conviction and sentencing for criminal activities committed throughout the 2021-2022 market cycle, a period marked by heightened retail market participation.
Additional individuals who have been convicted include Sam Bankman-Fried, former FTX CEO, and Alex Mashinsky, former Celsius CEO, both of whom are presently serving 25-year and 12-year sentences, respectively.
On Jan. 8, US President Donald Trump stated that he wouldn't pardon the former FTX boss, despite having pardoned Changpeng "CZ" Zhao, former Binance CEO, in October.
Despite this, Bankman-Fried hasn't given up, having asked a federal appeals panel for a new trial on Thursday.