Braden John Karony, the former CEO of SafeMoon, has been sentenced to eight years in prison for his involvement in a multi-million dollar cryptocurrency fraud scheme.
U.S. District Judge Eric Komite delivered the sentence in a Brooklyn federal court after a jury found him guilty in May 2025, following a three-week trial.

Details of The Sentencing

Court documents show that Karony was convicted for conspiracy involving securities fraud, wire fraud, and money laundering. The court ordered him to forfeit around $7.5 million, with victim restitution amounts to be determined subsequently. Additionally, the jury mandated the forfeiture of two residential properties.

Meanwhile, his associate Thomas Smith admitted guilt in February 2025 and is awaiting sentencing, while Kyle Nagy remains on the run.

“Karony misled investors from diverse backgrounds—including military veterans and everyday citizens—and scammed thousands to sustain a luxurious lifestyle involving mansions and sports cars,” stated Joseph Nocella, Jr., the United States Attorney.

FBI Assistant Director James C. Barnacle noted that Karony abused his authority and lost investors’ trust by stealing more than $9 million in cryptocurrency to fund a lavish lifestyle, which included luxury vehicles and real estate purchases.

IRS-CI Agent Harry T. Chavis added that Karony implemented the fraudulent scheme by exploiting access to SafeMoon’s liquidity pool and attempting to conceal transactions, which investigators eventually traced back to reveal the illegality.

Liquidity Pool Misrepresentations

SafeMoon tokens were launched in March 2021, automatically incurring a 10% tax on each transaction—split into two equal parts for holders and to enhance market liquidity.

In the months following its launch, SafeMoon attracted millions of users and achieved a market cap surpassing $8 billion.

Prosecutors assert that Karony and his collaborators made false claims about the company’s operations, assuring investors that funds were securely locked and could not be used for personal gain. Instead, they retained access to the liquidity pool and diverted substantial amounts for their own personal benefit.