SafeMoon CEO Stole $9 Million to Buy Mansions and Sports Cars, Gets 8 Years

TLDR

• Braden Karony, former SafeMoon CEO, was sentenced to 100 months in prison for stealing $9 million from investors
• Karony used stolen funds to buy a $2.2 million Utah home, Audi R8, Tesla, and custom trucks
• He was convicted of conspiracy to commit securities fraud, wire fraud, and money laundering in May 2025
• Karony must forfeit $7.5 million and two homes, with additional restitution amounts to be determined later
• Former CTO Thomas Smith pleaded guilty and awaits sentencing, while co-founder Kyle Nagy remains at large

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Braden Karony received a 100-month prison sentence on Monday for stealing $9 million from SafeMoon’s liquidity pool. The former CEO of the crypto platform was convicted by a federal jury in May 2025.

Karony stole the money in 2021 during the height of the crypto market boom. He used the funds to finance what prosecutors called a lavish lifestyle.

The stolen proceeds went toward purchasing a $2.2 million home in Utah. Karony also bought multiple luxury vehicles including an Audi R8 sports car and a Tesla.

He purchased custom Ford F-550 and Jeep Gladiator pickup trucks with investor money. The purchases came as SafeMoon investors trusted the platform with their funds.

Crime Details and Conviction

The sentencing took place in U.S. District Court for the Eastern District of New York. Karony was found guilty of conspiracy to commit securities fraud, wire fraud, and money laundering.

FBI Assistant Director James C. Barnacle Jr. said Karony abused his position as CEO. He betrayed investor trust by stealing digital assets from his own company.

U.S. Attorney Joseph Nocella Jr. stated that Karony lied to investors from all walks of life. The victims included military veterans and hard-working Americans.

Prosecutors said Karony manipulated the price of SafeMoon tokens. He illicitly controlled liquidity pools to drain millions from the failed Utah-based company.

The trial lasted three weeks before the jury reached a guilty verdict. Karony’s crimes occurred during the 2021-2022 market cycle when retail participation peaked.

Financial Penalties and Restitution

The court ordered Karony to forfeit approximately $7.5 million. He must also give up two residential properties.

The Department of Justice will determine the exact restitution amount for victims at a later date. Thousands of investors lost money in the SafeMoon fraud scheme.

Nocella said the sentence shows there are consequences for financial crimes. His office pledged to continue prosecuting economic crimes that harm investors.

The prosecution aims to maintain trust in digital asset markets. These crimes weaken public confidence in the stability and security of crypto platforms.

Co-Conspirators Face Legal Action

Thomas Smith, SafeMoon’s former chief technology officer, pleaded guilty in February 2025. He admitted to conspiracy to commit securities and wire fraud.

Smith is currently awaiting his sentencing hearing. The court has not yet scheduled a date for his punishment.

Kyle Nagy, the creator of the SafeMoon platform, remains at large. The Department of Justice continues to search for the alleged co-conspirator.

Karony joins other crypto executives convicted during the 2021-2022 cycle. Former FTX CEO Sam Bankman-Fried is serving a 25-year sentence.

Former Celsius CEO Alex Mashinsky is currently serving 12 years in prison. President Donald Trump said in January he would not pardon Bankman-Fried.

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