TLDR
Braden John Karony, former SafeMoon CEO, found guilty of conspiracy, wire fraud, and money laundering
Jury deliberated for less than a day after a two-week trial in New York
Karony faces up to 45 years in prison for misappropriating millions in investor funds
Co-defendant Thomas Smith testified against Karony after entering a guilty plea
Another co-defendant, Kyle Nagy (platform creator), reportedly fled to Russia
A New York federal jury has convicted Braden John Karony, the former CEO of cryptocurrency company SafeMoon, on all counts in a high-profile crypto fraud case. The verdict came after less than a day of deliberation following a two-week trial in the US District Court for the Eastern District of New York.
Karony was found guilty of conspiracy to defraud the United States, wire fraud, and money laundering. He now faces up to 45 years in prison for his role in the scheme that prosecutors say misappropriated millions of dollars in investor funds.
The case centered around SafeMoon, a cryptocurrency token launched in 2021 that once reached a market cap exceeding $8 billion. The token applied a 10% transaction tax on transfers, with half supposedly redistributed to token holders and the remainder locked in a liquidity pool to support trading.
However, prosecutors revealed that Karony and his co-conspirators retained access to this liquidity pool. They allegedly diverted substantial funds for personal use while publicly claiming they did not hold or trade SafeMoon tokens.
BREAKING: Former SafeMoon CEO Braden John Karony has been found guilty on all three criminal counts against him: Securities Fraud Conspiracy, Wire Fraud Conspiracy, and Money Laundering Conspiracy pic.twitter.com/KR5iqInMoI
— Protos (@Protos) May 21, 2025
The Fraud Scheme Exposed
Court documents showed that Karony personally obtained more than $9 million in crypto assets from the scheme. The diverted funds were used to purchase multiple properties, luxury vehicles including an Audi R8 and Tesla, and custom trucks.
Authorities said Karony concealed his trading activity and use of investor funds through a series of pseudonymous wallets and unhosted accounts on centralized exchanges. This deception allowed him to profit during peak prices while ordinary investors lost money.
“The SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” said US Attorney Joseph Nocella, Jr. in a statement.
I am innocent and did not commit fraud. pic.twitter.com/nnYBdlEmgt
— John Karony (@CptHodl) May 14, 2025
The jury also ordered the forfeiture of one residential property and the proceeds from the sale of another, amounting to roughly $2 million.
Thomas Smith, the former chief technology officer of SafeMoon, testified against Karony at trial after entering a guilty plea as part of a deal with prosecutors. Smith is currently awaiting sentencing and may receive a lighter sentence due to his cooperation.
Legal Fallout Continues
Kyle Nagy, the platform’s creator and another co-defendant, reportedly fled to Russia and remains at large as of May 21, 2025.
The case was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations, with assistance from the US Securities and Exchange Commission.
Karony’s conviction follows a pattern of legal action against cryptocurrency executives. Former Celsius CEO Alex Mashinsky was recently sentenced to 12 years in prison after pleading guilty to fraud charges. Former FTX CEO Sam Bankman-Fried, who pleaded not guilty and went to trial, received a 25-year sentence after his 2023 verdict.
The trial was closely watched as a test case for how Joseph Nocella, the interim US Attorney for the district and a Donald Trump appointee who took office on May 5, would handle cases involving digital assets and fraud.
A sentencing date for Karony has not yet been announced. He maintained his innocence throughout the trial, but the jury’s quick deliberation suggests the evidence against him was compelling.
The post Former SafeMoon CEO Convicted of Crypto Fraud and Money Laundering appeared first on Blockonomi.
