Former SafeMoon CEO is found guilty on all charges and faces up to 45 years in prison for fraud and conspiracy in the crypto scheme.
Braden Karony, the former CEO of SafeMoon, was convicted of defrauding investors and utilizing stolen funds to purchase luxury residences and vehicles.
Braden John Karony, the former CEO of SafeMoon, has been found guilty of all charges in a criminal case associated with a significant crypto fraud conspiracy by a federal jury in New York. The allegations encompassed conspiracy to commit securities fraud, wire fraud, and money laundering.
In a press release issued on Wednesday, the Department of Justice stated that Karony and his co-conspirators deceived investors regarding the operation of SafeMoon and utilized investor funds for their gain. Prosecutors accused Karony of “utilizing his scheme to acquire various luxury items, including various homes, sports cars, and custom trucks.”
U.S. Attorney Joseph Nocella:
“As proven at trial, 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. Karony used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods.”
The news caused SafeMoon’s token (SFM) to plummet by 7% to $0.00001925, extending a decline that has resulted in a 99.7% loss from its all-time high three years ago.
Karony, Thomas Smith, and Kyle Nagy, co-defendants, allegedly accessed and drained SafeMoon’s liquidity pools despite publicly asserting that they were “locked.” Smith entered a plea of guilty and provided testimony against Karony. It has been reported that Nagy has escaped to Russia and is currently at large.
Prosecutors claimed that Karony personally gained over $9 million, which he subsequently spent on a $2.2 million residence in Utah, additional properties, and luxury vehicles, including two Audi R8s, a Tesla, and custom trucks. Karony is currently facing a maximum sentence of 45 years. The date of sentencing has not yet been disclosed.
