A Brooklyn federal jury recently found Braden John Karony, co-founder and CEO of SafeMoon, guilty of all three criminal charges. Authorities allege that he organized securities fraud, wire fraud, and money laundering in an elaborate scheme that defrauded SafeMoon investors of millions of dollars.
U.S. Federal Jury Convicts SafeMoon CEO
Following a 12-day trial in the U.S. District Court for the Eastern District of New York, the Department of Justice (DOJ) announced that jurors had unanimously convicted Karony. He and his co-conspirators misled investors. They falsely asserted that SafeMoon’s liquidity pool was permanently locked and inaccessible to its team.
Contrary to the team’s claims, prosecutors presented evidence that Karony authorized and executed transfers from the liquidity pool. The proceeds from the siphoned funds were spent on luxury vehicles and real estate acquisitions, including a $2.2 million home in Utah.
Notably, the three criminal charges of conspiracy carry long prison terms of up to 45 years under federal law. The jury’s verdict will result in the government seeking a severe sentence reflecting the scheme’s scope and the extent of investor harm. In addition to potential imprisonment, Karony may lose his $2 million real estate property.
Commenting on the jury’s decision, United States Attorney for the Eastern District of New York, Joseph Nocella, said:
“Today’s guilty verdict should serve as a warning to all would-be fraudsters that my Office will vigorously prosecute individuals like the defendant who victimize digital asset investors and undermine investor confidence in digital assets markets, thereby threatening the stability and growth of these emerging technologies.”
U.S. DOJ Pursues Crypto Crimes
The Justice Department has not turned a blind eye to crypto-related crimes. It recently secured court orders to seize five internet domains used to operate the LummaC2 infostealer malware. The service is known for harvesting browser data, login credentials, and crypto wallet seed phrases from victims, enabling crypto theft.
Recall that the agency recently sentenced a 26-year-old from Alabama to 14 months in prison for his role in hacking the Securities and Exchange Commission’s official X (formerly Twitter) account. After the hack, he posted a false announcement that the SEC had approved Bitcoin ETFs. The deceptive post caused Bitcoin’s price to increase by over $1,000 in minutes.
Meanwhile, CTW had previously reported that Rashawn Russell, a former banker, received a 41-month prison term. He admitted to being involved in a ponzi-like crypto scheme that defrauded investors of over $1.5 million.
