Former SafeMoon CEO Embezzled Over $9 Million, Sentenced to 100 Months in Prison and Asset Forfeiture, Marking the End of the Meme Coin Myth
The U.S. Eastern District Attorney’s Office announced Tuesday that Braden John Karony, the 29-year-old former CEO of SafeMoon, used his position for personal gain, defrauding investors and living extravagantly. He was sentenced to 100 months (approximately 8 years and 4 months) in prison.
Prosecutors stated that although Braden John Karony publicly claimed to lead investors “safely to the moon (SafeMoon),” he secretly regarded investors as ATMs. According to investigations, he stole over $9 million in digital assets from the company, using the funds to purchase a $2.2 million property in Utah, an Audi R8 supercar, a Tesla, and a custom Ford F-550 pickup truck.
In addition to serving 8 years in prison, the court ordered the forfeiture of approximately $7.5 million in illicit gains and two properties. James Barnacle, Assistant Director of the FBI New York Office, stated in a release: “Braden John Karony not only abused his position as CEO but also betrayed investors’ trust by embezzling over $9 million in digital assets to fund a lavish lifestyle.”
In May this year, a federal grand jury convicted Braden John Karony of conspiracy to commit securities fraud, wire fraud, and money laundering.
SafeMoon LLC launched the SafeMoon cryptocurrency in 2021, which at one point had a market cap exceeding $8 billion and was highly popular among retail investors. Its most attractive feature was the “transaction tax”: whenever holders transferred or traded tokens, a 10% tax was deducted, with 5% redistributed to holders and the remaining 5% injected into the liquidity pool.
However, prosecutors pointed out that this was all a scam. Braden John Karony and his accomplices actually retained control over the liquidity pool and secretly embezzled millions of dollars without informing investors.
Two other key figures in the case also face legal consequences. Former CTO Thomas Smith pleaded guilty in February 2025 and is awaiting sentencing, while another accomplice, Kyle Nagy, remains at large and is being actively pursued by U.S. authorities.
- This article is reprinted with permission from BlockCast
- Original title: “Embezzled $9 Million in Public Funds and Spent Lavishly! Former SafeMoon CEO Sentenced to 8 Years for Fraud”
- Original author: Block Sister MEL
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