22-5-2025 – Braden Karony, the chief executive of digital asset firm SafeMoon, has been convicted on all counts in a high-profile fraud trial in New York’s Eastern District. Following a gripping 12-day hearing before U.S. District Judge Eric R. Komitee, the jury found Karony guilty of conspiracy to commit securities fraud, wire fraud, and money laundering—charges that could see him face up to 45 years behind bars. The ruling also mandates the forfeiture of one residential property and approximately $2 million from the sale of another, underscoring the scale of the financial misconduct.
The case, meticulously investigated by the FBI, IRS Criminal Investigation, Homeland Security Investigations, and the Securities and Exchange Commission (SEC), laid bare a sophisticated scheme that betrayed the trust of SafeMoon’s investors. Prosecutors exposed how Karony and his associates falsely portrayed the project’s liquidity pools as secure and inaccessible to executives, while secretly siphoning off millions for personal enrichment. U.S. Attorney Joseph Nocella, Jr., condemned the deception, stating that Karony “orchestrated a scheme to amass wealth by plundering investor funds, leaving promises of safety as little more than a mirage.” At its peak, SafeMoon’s market capitalisation soared beyond $8 billion, even as the illicit diversion of funds fuelled Karony’s extravagant purchases, including multiple homes, sports cars, custom trucks, and other luxury indulgences.
Further damning revelations showed Karony funnelling over $9 million in cryptocurrency through pseudonymous wallets and unhosted exchange accounts to obscure his illicit gains. While co-defendant Thomas Smith has already pleaded guilty and awaits sentencing, a third associate, Kyle Nagy, remains at large. The SafeMoon scandal emerges amid heightened scrutiny of the digital asset sector, with the SEC recently levelling charges against Unicoin and its executives for allegedly raising over $100 million through misleading claims. This landmark conviction signals a robust escalation in efforts to root out fraud in the volatile world of cryptocurrencies, casting a stark warning to those who exploit investor trust for personal gain.
