Former SafeMoon CEO Braden Karony received a 100 month prison sentence for a $9 million SafeMoon investor fraud scheme tied to the project’s liquidity pool, according to the report.
The sentence was issued on Monday. It came about nine months after a federal jury convicted Karony in May 2025 on securities fraud, wire fraud, and money laundering counts.
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Investigators said Braden Karony took digital assets from the SafeMoon liquidity pool in 2021.
They said he used the money for personal spending while investors believed the pool stayed protected.
SafeMoon Liquidity Pool Theft Led to Federal Securities Fraud Conviction
The report said prosecutors framed the case around liquidity pool theft and investor deception.
The jury convicted Braden Karony of conspiracy to commit securities fraud, conspiracy to commit wire fraud, and money laundering.
FBI assistant director James C. Barnacle, Jr. connected the charges to investor trust.
“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,” Barnacle said.
US Attorney Joseph Nocella, Jr. described the victims and the impact. “Karony lied to investors from all walks of life — including military veterans and hard working Americans,” Nocella said.
He added:
“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.”
Braden Karony Spent SafeMoon Funds on $2.2M Home and Luxury Cars
Prosecutors said Braden Karony used the stolen assets to buy a $2.2 million home in Utah, according to the report.
They also listed several vehicles. The purchases included an Audi R8, a Tesla, a custom Ford F 550, and Jeep Gladiator pickup trucks.
The report described those buys as part of the spending trail used to support the SafeMoon fraud case. Investigators tied the items to money moved from the SafeMoon liquidity pool.
SafeMoon CTO Thomas Smith Pleaded Guilty, Kyle Nagy Remains at Large
The report said former SafeMoon chief technology officer Thomas Smith pleaded guilty in February 2025.
He admitted to conspiracy to commit securities and wire fraud, and he still awaits sentencing.
The report also said SafeMoon creator Kyle Nagy remains at large. Prosecutors listed him as an alleged co conspirator.
The court ordered Braden Karony to forfeit about $7.5 million, the report said. It added that restitution for victims will be determined later.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: February 11, 2026 • 🕓 Last updated: February 11, 2026
