Braden John Karony, former CEO of the defunct crypto firm Safemoon, has been sentenced to 100 months in federal prison by a U.S. court for defrauding investors. The court, presided over by District Judge Eric Komitee, also ordered Karony to forfeit $7.5 million and two properties, with restitution to victims to be determined later. Karony was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering after a trial in May 2025.
Prosecutors demonstrated that Karony misappropriated over $9 million from Safemoon's liquidity pools to finance a lavish lifestyle, including purchasing a $2.2 million mansion and luxury vehicles. Safemoon, which once reached a market cap of $8 billion, falsely claimed its liquidity pools were "locked" while Karony and his associates secretly accessed and profited from them. The investigation involved multiple agencies, including the FBI and IRS-CI, highlighting the extensive fraud that affected over a million investors.
Safemoon CEO Sentenced to 8 Years for Investor Fraud
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