A federal jury has found Braden John Karony, CEO of the DeFi project SafeMoon, guilty of cryptocurrency fraud.
According to prosecutors, the accused and his accomplices misappropriated funds from the liquidity pool, despite public assurances of its safety and lock-up.
Karony was convicted on three counts:
The maximum penalty for these charges is 45 years in prison.
In 2021, SafeMoon reached a capitalization of $8 billion. The project charged a 10% fee on each transaction, promising to direct half into a “locked” liquidity pool.
Investigators found that instead, Karony transferred “millions” to his accounts, concealing it through a “maze of wallets and anonymous transactions.” His personal gain is estimated to have exceeded $9 million.
With the proceeds, Karony purchased luxury real estate and cars, including an Audi R8 and a Tesla.
“SafeMoon was a pie in the sky for investors, deliberately misled by Karony — a man seeking to get rich quick by stealing and siphoning millions of dollars,” said attorney Joseph Nocella.
The project’s CEO continues to assert his innocence on social media.
In 2023, the Department of Justice and the U.S. Securities and Exchange Commission also charged SafeMoon creator Kyle Nagy. He remains at large.
