SafeMoon CEO Gets 8 Years in Prison for Investor Fraud


#SafeMoon CEO Braden John Karony will serve 100 months in federal prison after District Judge Eric Komitee sentenced him Tuesday for orchestrating an investor #fraud scheme. The Eastern District of New York court also ordered Karony to surrender $7.5 million, with additional victim restitution amounts pending determination.


A jury convicted Karony last May on charges including conspiracy to commit securities fraud, wire fraud, and money #laundering following a three-week trial. The eight-year, four-month sentence falls below the government's 12-year recommendation but is well short of the 45-year maximum penalty he faced.


Defense attorneys highlighted Karony's age and brain development, his parents' military service, and character witnesses during sentencing proceedings, according to Inner City Press courtroom coverage. U.S. Attorney Joseph Nocella stated Karony deceived investors across demographics, including military veterans and working-class Americans.


Nocella emphasized that the sentence sends a message about consequences for #financial crimes, adding that his office will maintain aggressive prosecution of economic offenses that damage investor confidence and undermine trust in digital asset markets.


The $SFM token reached an $8 billion market #capitalization in 2021 using a 10% transaction tax structure marketed as benefiting holders. The mechanism designated half the tax for automatic redistribution to existing token holders, with the remaining half directed to liquidity pools intended to support trading stability.


Karony manipulated these liquidity pools by diverting and misappropriating funds, according to the Justice Department. He maintained control over tokens that investors believed were locked, using this access to artificially influence $SFM price movements while extracting millions.

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February 11, 2026 at 4:36 AM
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