Braden John Karony, the one-time CEO of SafeMoon, has been sentenced to 100 months in US federal prison after a jury found him guilty of multiple fraud counts.
According to courtroom records and Justice Department statements, he was convicted on charges that included securities fraud, wire fraud, and money laundering.
Reports say prosecutors proved that investors were told liquidity was secure when it was not, and that insiders were able to move funds for personal gain.
“Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing over $9 million in crypto from his company to fund his lavish lifestyle,” James C. Barnacle, Jr., FBI assistant director, said.
The founder of SafeMoon has been sentenced to 100 months in prison
The founder of FTX claims the exchange was solvent while serving 25 year sentence
— Wendy O (@CryptoWendyO) February 10, 2026
SafeMoon: False Locks And Hidden Transfers
Reports note that Karony and others told buyers that SafeMoon’s liquidity pools were “locked,” a claim that calmed many who put money into the token. Instead, prosecutors showed how more than $9 million was diverted from those pools.
He used some of the money to buy high-end homes and vehicles. The FBI described the moves as deliberate. Victims included small investors and people on modest incomes. Some lost savings. It left trust badly shaken.
According to US Attorney Joseph Nocella, Jr. Karony “lied to investors from all walks of life — including military veterans and hard-working Americans.”
Founder of SafeMoon, Braden Karony, has just been sentenced to 100 months in prison.
“This is more like theft than fraud. It was not a small loss per person like in many securities frauds. Mr. Karony, please rise.I sentence you to 100 months in the custody of the AG. On count… pic.twitter.com/riFdBLyNLU
— Ariel Givner (@GivnerAriel) February 10, 2026
The Trial And Conviction
The trial ran for three weeks in May 2025. A jury returned guilty verdicts across the board. Based on reports, sentencing was handled by US District Judge Eric Komitee in the Eastern District of New York.
The Justice Department sought a stiff term, and the court obliged. One former executive, Thomas Smith, has pleaded guilty and faces his own punishment.
Other co-founders are still under scrutiny. Reports say authorities will press to recover funds through forfeiture and restitution orders.
BTCUSD trading at $66,546 on the 24-hour chart: TradingView
Ruined Lives & Lost Money
People who backed SafeMoon often did so because they believed in the project or wanted a new way to invest. Many found out the hard way that promises in promo posts and social feeds can hide real dangers.
Some investors watched balances drop. Others tried to follow the paper trail and grew alarmed when transfers led to private bank accounts and luxury purchases. The case exposed how quickly trust can evaporate when controls fail.
Restitution And Future Cases
The court ordered forfeiture of about $7.5 million, but the full scale of losses is still being worked out in follow-up hearings. Restitution proceedings will aim to return money to victims, but such processes can take time.
Law enforcement in the US has signaled a steady interest in crypto fraud prosecutions. That means more investigations and, likely, more court dates for those accused of similar schemes.
Featured image from John Karony – Medium, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
-1024x683.jpg "Judge Who Helped Violent Illegal Alien Evade ICE Faces New Test")
-1024x683.jpg "Montana Puts Democrats in a Bind as Senate Hopes Fade")
