tl;dr
Braden Karony, CEO of SafeMoon, was found guilty by a U.S. federal jury of conspiracy to commit securities fraud, wire fraud, and money laundering in a crypto fraud case involving the misappropriation of millions from investors. Following a 12-day trial, he faces up to 45 years in prison. The jury a...
Braden Karony, CEO of SafeMoon, has been found guilty of all charges related to a major crypto fraud scheme involving conspiracy, wire fraud, and money laundering. The fraudulent activities led to the misappropriation of millions in investor funds.
Karony faces severe penalties, including up to 45 years in prison and the forfeiture of properties valued at approximately $2 million, directly linked to the illicit scheme.
Prosecutors detailed how Karony and his co-conspirators deceived investors about the SafeMoon token’s structure. They secretly diverted funds from the liquidity pool, which was supposed to support trading, and engaged in undisclosed personal trading despite public claims to the contrary.
The misappropriated funds were used to acquire luxury assets such as high-end vehicles and real estate. Karony personally gained over $9 million in cryptocurrency by using concealed wallets and unhosted accounts to hide his trades and financial movements.
The investigation was a collaborative effort between the FBI, IRS Criminal Investigation, Homeland Security Investigations, and the U.S. Securities and Exchange Commission. While one co-defendant has pleaded guilty, another remains at large, and both face separate legal proceedings.
This case highlights broader concerns about fraud in the cryptocurrency market and undermines investor confidence in digital assets. Karony’s conviction serves as a cautionary tale about the risks of deceptive practices in the crypto space.