A federal judge has sentenced former SafeMoon US LLC CEO Braden John Karony to 100 months in prison over a multi-million dollar fraud tied to the SafeMoon token. He must forfeit about 7.5 million dollars, with restitution to be decided later, and a jury also ordered the forfeiture of two residential properties.

Sentence and Prosecutors’ Statements

The U.S. District Court for the Eastern District of New York imposed the sentence after a three-week trial that ended in May 2025, where a federal jury convicted Karony of conspiracy to commit securities fraud, wire fraud, and money laundering.

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Prosecutors said Karony and his associates misled investors about how SafeMoon’s token tax and liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pools operated and then diverted funds for personal use.

U.S. Attorney Joseph Nocella Jr. said Karony lied to investors “from all walks of life” and defrauded thousands of victims to buy mansions, sports cars, and custom trucks. FBI Assistant Director in Charge James Barnacle Jr. said Karony stole more than 9 million dollars in digital assets from his company.

“Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering,” the DOJ said on Tuesday.

“The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC.”

SafeMoon Mechanics and Alleged Misconduct

Earlier, SafeMoon filed for bankruptcy in the Utah Bankruptcy Court, reporting assets between $10 million and $50 million and debts ranging from $100,000 to $500,000. The filing highlights the company’s strained financial condition and comes shortly after the arrests of its top executives.

The exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term launched in 2021 with a 10% tax on every token transaction, split into a 5% “reflection” to token holders and 5% for liquidity pools that the team described as “locked.”

Read more: SafeMoon’s Former CEO Faces Fraud Charges as DOJ Maintains Case

Prosecutors said insiders, including Karony, in fact retained access to those pools, diverted millions of dollars’ worth of tokens, and traded SafeMoon for their own benefit, sometimes near price peaks.

Authorities said Karony routed funds through multiple un-hosted wallets, complex transactions, and pseudonymous exchange accounts, and used proceeds to buy a 2.2 million dollar home in Utah, other properties in Utah and Kansas, and several luxury vehicles.

Co-conspirator Thomas Smith pleaded guilty in February 2025 and awaits sentencing, while another alleged conspirator, Kyle Nagy, remains at large.