Quick overview

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Braden John Karony, the former CEO of SafeMoon, was convicted by a federal jury in Brooklyn of conspiracy to commit securities fraud, wire fraud, and money laundering. The conviction follows an 18-month investigation into one of the most notorious cryptocurrency fraud cases in recent memory and a lengthy 12-day trial.

 

The prosecution accused Karony and his associates of deliberately misleading investors by claiming that SafeMoon’s liquidity pool was locked and untouchable, when in reality, they were embezzling millions of dollars from it to fund an extravagant lifestyle.

DOJ stated that evidence presented in court revealed that Karony used investor funds to purchase luxury cars, such as a Tesla and an Audi R8v, and multimillion-dollar real estate in Utah.

Karony maintained that liquidity funds could only be used in dire circumstances, but Thomas Smith, SafeMoon’s former CTO, who accepted a plea bargain, testified that there was intentional dishonesty. Smith acknowledged that the forfeiture of assets totaling at least $2 million, including residential properties, is another consequence of Karony’s guilt.

He may face a maximum sentence of 45 years in prison. US Attorney Joseph Nocella said Karony “lined the driveways of his million-dollar homes with luxury cars” and SafeMoon was a “front for theft.”

Kyle Nagy, the project’s elusive founder, remains at large while Smith awaits sentencing. Acting Special Agent in Charge McCormack of HSI New York stated in an official statement that Braden John Karony treated millions of dollars in investor funds as his personal bank account, driven by his avaricious greed and self-centered desires.

The defendant will soon trade his expansive property and expensive cars for a prison cell in a federal penitentiary.