Jury Finds Karony Guilty on All Counts
Braden Karony, former CEO of the crypto project SafeMoon, has been convicted by a U.S. federal jury on all charges, including conspiracy to commit securities fraud, wire fraud, and money laundering. The verdict was delivered after a 12-day trial in the Eastern District of New York, overseen by Judge Eric R. Komitee.
Faces Up to 45 Years in Prison
Karony could face a maximum sentence of 45 years. In addition to the conviction, the jury ordered the forfeiture of two properties worth approximately $2 million. The decision sends a stern warning to crypto executives engaging in deceptive practices.
The Scheme That Shook Investor Trust
According to prosecutors, Karony and co-conspirators misled investors about SafeMoon’s structure and safety. Launched in 2021, the token promised a 10% transaction fee, with half supposedly returned to holders and the other half locked in a liquidity pool. However, Karony and others allegedly accessed and siphoned funds from that pool for personal gain.
Co-Conspirators and Fallout
The case, which began with arrests in 2023, also involves SafeMoon’s former CTO Thomas Smith—who testified against Karony—and founder Kyle Nagy, currently believed to be in Russia and still at large. Smith has reportedly agreed to a plea deal, likely securing a reduced sentence.
U.S. Attorney Nocella Speaks Out
“The SafeMoon digital asset was anything but safe,” said U.S. Attorney Joseph Nocella, Jr. “Karony misled investors to enrich himself and destabilized trust in the digital asset market.” This trial is viewed as a litmus test for how Nocella, newly appointed in May, will prosecute digital asset fraud cases.
Social Media Defense Falls Flat
Throughout the trial, Karony took to social media platform X to proclaim his innocence. On May 6, he posted that he “did not commit fraud,” despite mounting evidence presented by prosecutors. The jury, however, was not convinced.
Crypto Market Shaken by Executive Convictions
Karony's trial follows a string of high-profile crypto fraud cases. Former FTX CEO Sam Bankman-Fried received 25 years, while Celsius’s ex-CEO Alex Mashinsky was sentenced to 12 years. Karony’s conviction adds to growing fears about criminal activity in the crypto industry and may cause investor hesitation in DeFi ventures.
What’s Next?
While Karony’s sentencing date remains unconfirmed, the crypto world is watching closely. The case underscores the need for transparency and legal accountability in the rapidly evolving digital finance space.