SafeMoon Fraud Trial Ends with CEO Braden Karony Convicted on All Charges

Highlights:

• Braden Karony is facing 45 years in prison after a fraud conviction linked to SafeMoon token misuse.
• SafeMoon used funds from the platform to buy expensive personal items in different locations.
• Prosecutors revealed a secret access to the liquidity pool and diverted funds.

A federal jury has found Braden Karony, former CEO of SafeMoon, guilty on all counts. The former CEO was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering. SafeMoon was a cryptocurrency and blockchain company that filed for bankruptcy in December 2023. The 12-day trial began on May 5 and ended with a swift jury decision. Meanwhile, the court has ordered the state to confiscate all assets tied to the fraud.

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(1/3) “As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” stated U.S. Attorney Nocella.

— US Attorney EDNY (@EDNYnews) May 21, 2025

Prosecutors showed that Karony and his associates misled investors about the SafeMoon token’s safety. They falsely claimed that the token’s liquidity pool was locked and protected. They also told investors that insiders had no access to funds or trading abilities. However, the trial revealed that the team kept full access and used investor funds for personal enrichment.

Misleading Statements at the Center of SafeMoon Fraud

Karony and his co-defendants made several false claims to boost investor confidence. They assured the public and the investors that the developers of the token do not own or trade the tokens. They also promoted a 10% transaction tax as a method to secure liquidity and reward holders. In addition, they said the team would manually add token pairs when trading occurred on exchanges.

Even after a strong argument by the defense attorneys, the prosecution opposed their claims backed by evidence. The prosecutors presented evidence that tied the accused to the related wallets and proved that they could access the liquidity pool. Whenever the market hit its peak, they traded tokens in order to profit more. They made it seem less suspicious by putting the transactions into secret and hidden accounts.

The former CEO made over $9 million in the scheme. He used the funds to buy a home and other valuable properties in different states. According to the Justice Department, the accused purchased the properties using misappropriated investor funds.

The jury approved that the court would seize assets worth roughly $2 million. These included one residential property and profits from other assets. Prosecutors argued that the scheme not only harmed investors but also undermined trust in digital asset projects. The court agreed with the government and found Karony guilty of financial wrongdoing.

Key Testimony and Trial Support

Smith, who previously served as chief technology officer for SafeMoon, testified against Karony after admitting guilt. His explanations provided valuable understanding of how everything worked. Smith’s statements helped explain how the defendants accessed funds and executed trades. His cooperation may reduce his sentence to a lighter one.

Kyle Nagy, also known as “SafeMoon Dev,” remains at large and is believed to be in Russia. As of yesterday, law enforcement had not located him. The case was in the hands of the business and securities fraud section of the Justice Department.

Assistant US Attorney Laura Mantell supervised the asset forfeiture process. Paralegals Asher Martin-Rosenthal and Madison Bates provided legal support throughout the trial. They used information from both exchange providers and blockchain records to track how the money was moving. The case is one of many legal suits targeting crypto executives. A date for Braden Karony’s sentencing has not been determined. He is still being held in custody until further judicial proceedings. He may be sentenced to serve up to 45 years in the corrections system.

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