Braden John Karony, the CEO of SafeMoon US LLC, was sentenced to 100 months in prison by United States District Judge Eric Komitee in Brooklyn federal court for conspiracy to commit securities fraud, wire fraud, and money laundering. The sentencing comes after a jury convicted Karony following a three-week trial in May 2025. As part of his sentence, Karony must forfeit approximately $7.5 million, with restitution for victims to be determined later. The jury also ordered the forfeiture of two residential properties.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge at the FBI’s New York Field Office; Harry T. Chavis, Jr., Special Agent in Charge at IRS Criminal Investigation New York; and Michael Alfonso, Acting Special Agent in Charge at Homeland Security Investigations New York announced the sentence.
“Karony lied to investors from all walks of life—including military veterans and hard working-Americans—and defrauded thousands of victims in order to buy mansions, sports cars, and custom trucks,” stated United States Attorney Nocella. “Today’s sentence demonstrates that there are significant consequences for financial crimes. Our Office will continue to vigorously prosecute economic crimes that harm investors and weaken societal trust in the stability and security of digital asset markets.”
Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission for its work on the case.
“Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company to fund his lavish lifestyle,” stated FBI Assistant Director in Charge Barnacle. “The FBI is committed to addressing fraud in the digital asset marketplace to level the playing field for Americans.”
“Braden Karony exploited his access to SafeMoon’s liquidity pool to divert and misappropriate millions in cryptocurrency. He deceived investors, using their funds to lavishly expand his portfolio with million-dollar homes and luxury cars. By employing complex transactions to obscure the movement of these illicit proceeds, Karony acquired over $9 million in crypto assets. However, the expertise of IRS-CI special agents in tracing financial transactions outmatched Karony’s intricate schemes. His game of hide-and-seek failed, and now he must face justice and serve time in prison for his crimes,” stated IRS-CI New York Special Agent in Charge Chavis.
“Braden John Karony’s sentencing exposes the deep betrayal at the heart of a scheme that preyed on the hopes and trust of SafeMoon investors. He and his co-conspirators orchestrated a scheme fueled by greed, and exploited the faith of over a million victims,” stated HSI New York Acting Special Agent in Charge Alfonso. “HSI New York, together with our law enforcement partners, will continue to work tirelessly to ensure those who exploit the trust of investors—whether through fiat or cryptocurrency—will face justice.”
SafeMoon tokens were first issued by SafeMoon LLC on a public blockchain starting March 2021 as digital assets subject to an automatic 10% tax on every transaction: half would be distributed back proportionally among holders while half was meant for designated liquidity pools supporting market activity.
After launch, SafeMoon grew rapidly with millions holding tokens at one point and its market capitalization surpassing $8 billion.
Prosecutors described how Karony and others misrepresented key aspects about SafeMoon’s operation—including claims that liquidity pools were locked against insider withdrawals (so-called “rug pulls”), that funds would not be used personally by insiders but only for defined business purposes or investor benefit, that developer trading was prohibited or non-existent during relevant periods—and assured token holders that certain procedures would protect their interests.
In practice however they maintained access enabling them to divert substantial amounts from liquidity pools into personal accounts via complex routing techniques including private wallets and pseudonymous exchange accounts—resulting ultimately according to authorities’ findings—in acquisition by Karony alone exceeding $9 million worth which went toward real estate purchases (such as multiple Utah homes) along with high-value vehicles like Audi R8s or custom pickup trucks.
Co-conspirator Thomas Smith pleaded guilty earlier this year but awaits sentencing while another alleged participant Kyle Nagy remains at large.
The case is being prosecuted by members of Eastern District’s Business & Securities Fraud Section supported by other office units managing forfeiture/restitution processes as needed.
The U.S. Attorney’s Office for Eastern District covers Brooklyn, Queens, Staten Island as well as Nassau & Suffolk counties through offices located both locally within Brooklyn & Central Islip; it serves as lead federal prosecutor’s office handling criminal/civil matters across these areas while providing community outreach services such as victim/witness support programs (official website). Breon Peace currently leads this office (official website).
