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
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Frequent "precise trading" was observed before Trump's major announcement, and several experts are calling for a thorough investigation.
During Trump’s tenure, traders made precise moves ahead of his major policy announcements and could have profited millions of dollars. Legal experts say these trades look suspicious and should be investigated for information leaks to protect market fairness.
BlockBeatNews2h ago
Frequent precise trading occurred before major policy announcements from the Trump administration, with multiple experts calling for a thorough investigation.
Before Trump's second term, multiple traders profited millions of dollars by positioning themselves ahead of his policy decisions, sparking calls from legal experts for investigations into information leaks. Experts pointed out that these trading patterns are suspicious and may involve insider trading, warranting attention from regulatory agencies.
GateNews2h ago
The cryptocurrency KOL "taking orders" crosses the red line! The Financial Supervisory Commission wants to regulate it: relying on the Financial Consumer Protection Act for regulatory guidelines.
As cryptocurrency investment heats up in Taiwan, regulatory authorities are increasing their attention on "lead trading" behavior. The Financial Supervisory Commission plans to regulate KOL investment advice through legislation to establish an orderly market. At the same time, multiple illegal solicitation cases highlight the clarity of regulatory boundaries. The public should be cautious in selecting legal platforms to protect their rights and interests.
区块客2h ago
Warren probes China-based Bitmain over US security concerns: Report
Senator Elizabeth Warren has reportedly asked the US Commerce Department to explain how it is handling potential national security risks tied to Chinese crypto mining giant Bitmain, following previous reports that the firm has been under federal scrutiny.
In a letter sent Thursday to Commerce
Cointelegraph4h ago
The police in Chenzhou, Hunan, have cracked a virtual currency investment fraud case and seized 310 grams of gold.
Gate News reports that on March 29, the police in Chenzhou, Hunan province, uncovered a new type of investment fraud case involving virtual currency called "two golds for cash." They intercepted 7 packages of gold related to the fraud and seized 310 grams of gold. The police investigation revealed that the criminals lured victims under the guise of investment and financial management, encouraging them to purchase gold offline and send it to designated addresses. The illicit funds were then repeatedly circulated through virtual currency exchanges and overseas account transfers. The involved gold is currently being gradually returned to the victims, and the case is still under further investigation.
GateNews7h ago
AI Giants' Secret Past: Nvidia's Old Case Reexamined, Accused of Concealing $1 Billion in "Mining GPU" Revenue
NVIDIA has recently faced a class-action lawsuit from investors for concealing over $1 billion in cryptocurrency mining revenue, which has been officially approved to proceed by a U.S. federal judge. Investors allege that NVIDIA failed to adequately disclose its business's reliance on cryptocurrency demand during the period from 2017 to 2018, which affected its stock price. Although NVIDIA claims that cryptocurrency mining only accounts for a small portion of its business, the company benefited significantly during the crypto boom, and subsequently, its business performance was impacted by fluctuations in demand.
区块客8h ago
