Braden John Karony, the CEO of SafeMoon US LLC, was sentenced to 100 months in prison by United States District Judge Eric Komitee in Brooklyn federal court. Karony was convicted for conspiracy to commit securities fraud, wire fraud, and money laundering related to a scheme that defrauded investors in the digital asset known as “SafeMoon.” In addition to his prison sentence, Karony must forfeit approximately $7.5 million. The amount of restitution owed to victims will be determined later. His conviction followed a three-week trial in May 2025, during which a jury also ordered the forfeiture of two residential properties.
The sentencing was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge at the FBI’s New York Field Office; Harry T. Chavis, Jr., Special Agent in Charge at IRS Criminal Investigation New York; and Michael Alfonso, Acting Special Agent in Charge at Homeland Security Investigations New York.
“Karony lied to investors from all walks of life—including military veterans and hard working-Americans—and defrauded thousands of victims in order to buy mansions, sports cars, and custom trucks,” stated United States Attorney Nocella. “Today’s sentence demonstrates that there are significant consequences for financial crimes. Our Office will continue to vigorously prosecute economic crimes that harm investors and weaken societal trust in the stability and security of digital asset markets.”
Nocella also acknowledged assistance from the U.S. Securities and Exchange Commission.
“Not only did Braden John Karony abuse his position as CEO, but he also betrayed his investors’ trust by stealing more than nine million dollars in digital assets from his company to fund his lavish lifestyle,” stated FBI Assistant Director in Charge Barnacle. “The FBI is committed to addressing fraud in the digital asset marketplace to level the playing field for Americans.”
“Braden Karony exploited his access to SafeMoon’s liquidity pool to divert and misappropriate millions in cryptocurrency. He deceived investors, using their funds to lavishly expand his portfolio with million-dollar homes and luxury cars. By employing complex transactions to obscure the movement of these illicit proceeds, Karony acquired over $9 million in crypto assets. However, the expertise of IRS-CI special agents in tracing financial transactions outmatched Karony’s intricate schemes. His game of hide-and-seek failed, and now he must face justice and serve time in prison for his crimes,” stated IRS-CI New York Special Agent in Charge Chavis.
“Braden John Karony’s sentencing exposes the deep betrayal at the heart of a scheme that preyed on the hopes and trust of SafeMoon investors. He and his co-conspirators orchestrated a scheme fueled by greed, and exploited the faith of over a million victims,” stated HSI New York Acting Special Agent in Charge Alfonso. “HSI New York, together with our law enforcement partners, will continue to work tirelessly to ensure those who exploit the trust of investors—whether through fiat or cryptocurrency—will face justice.”
SafeMoon tokens were first issued by SafeMoon LLC on a public blockchain starting March 2021. Each transaction involving SafeMoon incurred an automatic 10% tax: half was meant for redistribution among token holders while the other half was supposed to go into designated liquidity pools intended to support market liquidity.
After its launch, SafeMoon attracted millions of holders and reached a market capitalization exceeding $8 billion.
Prosecutors said that Karony and others misrepresented key aspects about how SafeMoon operated—such as claiming that liquidity pools were locked against insider access or misuse—and denied holding or trading tokens themselves while doing so privately for profit.
Authorities detailed how Karony retained access allowing him personally (and co-conspirators) to divert millions from these pools into private accounts using various methods designed to conceal these transfers. The diverted funds were used for personal purchases including real estate worth over $2 million each in Utah (and additional homes), high-end vehicles such as Audi R8s valued at up to $277,000 each, Teslas, custom pickup trucks like Ford F-550s and Jeep Gladiators.
Co-conspirator Thomas Smith pleaded guilty earlier this year but has not yet been sentenced; another co-conspirator remains at large.
The prosecution team included several Assistant United States Attorneys handling both criminal charges as well as asset forfeiture matters.
The U.S. Attorney's Office for the Eastern District of New York is responsible for prosecuting federal crimes within its jurisdiction—which includes Brooklyn where this case was tried—as well as representing government interests on civil matters across several counties including Queens and Staten Island (official website). The office provides victim assistance services along with supporting community outreach programs (official website).
Karony is 29 years old from Provo, Utah.
