Former SafeMoon CEO Sentenced to 100 Months in Prison for Token Fraud

The investigation uncovered control over liquidity pools and the withdrawal of millions of dollars.

Former SafeMoon executive convicted in token fraud case

11.02.2026 - 09:50

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Key points:

A U.S. court has sentenced former SafeMoon CEO Braden Karony to 100 months in prison in connection with fraud involving the project’s token.
Prosecutors said the investigation revealed price manipulation and незаконный control over the platform’s liquidity pools.
Prosecutors said the investigation revealed price manipulation and незаконный control over the platform’s liquidity pools.

Former SafeMoon executive Braden John Karony now faces more than eight years behind bars. A federal jury previously found him guilty on multiple charges related to defrauding investors in the digital asset project.

The U.S. District Court for the Eastern District of New York imposed a 100-month sentence. The ruling also requires Karony to pay $7.5 million and forfeit two residential properties.

A spokesperson for the U.S. Attorney’s Office said Karony misled investors from various backgrounds, including veterans and working Americans. According to prosecutors, investor funds were used to purchase luxury homes and high-end vehicles. Authorities added that they will continue pursuing financial crimes in the digital asset sector.

Liquidity and Token Price Scheme

According to the Department of Justice, Karony took part in artificially inflating the price of the SafeMoon token and unlawfully gaining control over liquidity pools tied to the Utah-based company, which later filed for bankruptcy. Prosecutors allege that significant sums were diverted through this scheme.

After a three-week trial, the court found Karony guilty of conspiracy to commit securities fraud, wire fraud, and money laundering.

One of the co-defendants, Thomas Smith, pleaded guilty in February 2025 to related conspiracy and wire fraud charges. He has not yet been sentenced. Another alleged participant, Kyle Nagy, remains at large.

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