The former CEO of SafeMoon was sentenced to eight years in prison for defrauding investors; the funds were used to purchase luxury homes and sports cars.

PANews reported on February 11 that, according to The Block, the U.S. Attorney's Office for the Eastern District of New York announced on Tuesday that former SafeMoon CEO Braden John Karony was sentenced to more than eight years in prison for defrauding investors and had approximately $7.5 million and two residential properties forfeited. The 29-year-old Karony was convicted by a federal jury in May of securities fraud, wire fraud, and conspiracy to commit money laundering. Prosecutors stated that he misled investors through false advertising, illegally misappropriating over $9 million in project funds to maintain a lavish lifestyle, including purchasing a $2.2 million Utah residence, an Audi R8 sports car, a Tesla, and a custom Ford F-550 truck.

The SafeMoon project issued its tokens in 2021, at one point reaching a market capitalization exceeding $8 billion. Its transactions included a 10% tax mechanism, half of which was supposed to be injected into a liquidity pool. However, prosecutors allege that Karony and his accomplices fraudulently transferred millions of dollars from this pool for personal use. His accomplice, Thomas Smith, pleaded guilty in February 2025 and is awaiting sentencing; another accomplice, Kyle Nagy, remains at large.