Financial and Business News

SafeMoon's Former CEO Sentenced to Over Eight Years in Prison

Tuesday, 10/02/2026 | 21:06 GMT by Jared Kirui
  • The court also ordered Braden Karony to forfeit approximately $7.5 million, with restitution amounts to be determined later.
  • He was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering.
FRAUD
Finance Magnates

A federal judge has sentenced former SafeMoon US LLC CEO Braden Karony to 100 months in prison over a multi-million dollar fraud tied to the SafeMoon token. He must forfeit about 7.5 million dollars, with restitution to be decided later, and a jury also ordered the forfeiture of two residential properties.

Sentence and Prosecutors’ Statements

The U.S. District Court for the Eastern District of New York imposed the sentence after a three-week trial that ended in May 2025, where a federal jury convicted Karony of conspiracy to commit securities fraud, wire fraud, and money laundering .

Prosecutors said Karony and his associates misled investors about how SafeMoon’s token tax and liquidity pools operated and then diverted funds for personal use.

U.S. Attorney Joseph Nocella Jr. said Karony lied to investors “from all walks of life” and defrauded thousands of victims to buy mansions, sports cars, and custom trucks. FBI Assistant Director in Charge James Barnacle Jr. said Karony stole more than 9 million dollars in digital assets from his company.

“Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering,” the DOJ said on Tuesday.

“The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC.”

SafeMoon Mechanics and Alleged Misconduct

Earlier, SafeMoon filed for bankruptcy in the Utah Bankruptcy Court, reporting assets between $10 million and $50 million and debts ranging from $100,000 to $500,000. The filing highlighted the company’s strained financial condition and comes shortly after the arrests of its top executives.

Read more: SafeMoon’s Former CEO Faces Fraud Charges as DOJ Maintains Case

Prosecutors said insiders, including Karony, retained access to those pools, diverted millions of dollars’ worth of tokens, and traded SafeMoon for their own benefit, sometimes near price peaks.

A federal judge has sentenced former SafeMoon US LLC CEO Braden Karony to 100 months in prison over a multi-million dollar fraud tied to the SafeMoon token. He must forfeit about 7.5 million dollars, with restitution to be decided later, and a jury also ordered the forfeiture of two residential properties.

Sentence and Prosecutors’ Statements

The U.S. District Court for the Eastern District of New York imposed the sentence after a three-week trial that ended in May 2025, where a federal jury convicted Karony of conspiracy to commit securities fraud, wire fraud, and money laundering .

Prosecutors said Karony and his associates misled investors about how SafeMoon’s token tax and liquidity pools operated and then diverted funds for personal use.

U.S. Attorney Joseph Nocella Jr. said Karony lied to investors “from all walks of life” and defrauded thousands of victims to buy mansions, sports cars, and custom trucks. FBI Assistant Director in Charge James Barnacle Jr. said Karony stole more than 9 million dollars in digital assets from his company.

“Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering,” the DOJ said on Tuesday.

“The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC.”

SafeMoon Mechanics and Alleged Misconduct

Earlier, SafeMoon filed for bankruptcy in the Utah Bankruptcy Court, reporting assets between $10 million and $50 million and debts ranging from $100,000 to $500,000. The filing highlighted the company’s strained financial condition and comes shortly after the arrests of its top executives.

Read more: SafeMoon’s Former CEO Faces Fraud Charges as DOJ Maintains Case

Prosecutors said insiders, including Karony, retained access to those pools, diverted millions of dollars’ worth of tokens, and traded SafeMoon for their own benefit, sometimes near price peaks.

Topics
SafeMoon
About the Author: Jared Kirui
Jared Kirui
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Jared is an experienced financial journalist passionate about all things forex and CFDs.

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