Former SafeMoon CEO Braden Karony Receives 100 Month Prison Sentence for Stealing Nine Million Dollars from Crypto Platform in United States

The crypto world is reeling as former SafeMoon CEO Braden Karony received a 100-month prison sentence on Monday for misappropriating $9 million from the platform’s liquidity pool in 2021.

Authorities said he siphoned the funds to finance an extravagant lifestyle, including luxury cars and real estate.

The verdict comes nine months after a federal jury found him guilty in May 2025 on charges of conspiracy to commit securities fraud, wire fraud, and money laundering.

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Betrayal of Investors’ 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,” said FBI Assistant Director James C. Barnacle, Jr.

Karony reportedly used the stolen funds to buy a $2.2 million home in Utah, an Audi R8, a Tesla, and customized Ford and Jeep trucks.

According to US Attorney Joseph Nocella, Jr., his victims included military veterans and everyday Americans, underscoring the broad scope of the harm.

“Today’s sentence demonstrates that there are significant consequences for financial crimes,” Nocella said, stressing that the DOJ will continue to prosecute economic crimes that erode public confidence in digital asset markets.

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Restitution and Forfeiture

In addition to his prison sentence, Karony was ordered to forfeit roughly $7.5 million, while the exact restitution for the victims will be determined in future proceedings.

The Department of Justice highlighted that these measures aim to hold executives accountable and recover at least a portion of the defrauded funds.

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Other SafeMoon Executives in Legal Trouble

Karony isn’t alone in facing criminal charges from SafeMoon.

Former Chief Technology Officer Thomas Smith pleaded guilty to conspiracy to commit securities fraud and wire fraud in February 2025 and is awaiting sentencing.

Meanwhile, SafeMoon founder Kyle Nagy remains at large.

This case highlights the broader crackdown on cryptocurrency executives who abused investor trust during the 2021–2022 market cycle, a period of record retail participation in digital assets.

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Crypto Executives Face Growing Jail Terms

Karony joins a growing list of high-profile crypto leaders now behind bars.

Former FTX CEO Sam Bankman-Fried is serving a 25-year sentence, while former Celsius CEO Alex Mashinsky is serving 12 years.

Despite public speculation, former President Donald Trump has stated he would not pardon Bankman-Fried, even though he previously pardoned Binance CEO Changpeng “CZ” Zhao in October 2025.

Bankman-Fried recently filed for a new trial with a federal appeals panel.

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Lessons from the Crypto Boom

The SafeMoon case underscores the risks of unregulated digital markets, particularly when executives exploit their positions.

Retail investors, drawn by promises of high returns, remain vulnerable to fraud and mismanagement.

Regulators and prosecutors have increasingly focused on accountability, signaling to the crypto sector that illegal activity will carry real-world consequences.

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What’s Next?

The immediate focus now shifts to the pending sentencing of Thomas Smith and efforts to locate SafeMoon founder Kyle Nagy.

Additionally, courts will determine the exact restitution amounts owed to victims, which could help recover millions in lost investor funds.

The DOJ has also signaled ongoing investigations into other crypto platforms, with authorities keeping close watch on executives who might exploit the system.

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Summary

Braden Karony, former CEO of SafeMoon, has been sentenced to 100 months in prison for stealing $9 million from the platform to fund a lavish lifestyle.

He must forfeit $7.5 million, and restitution for victims will be decided later.

Other SafeMoon executives are also facing legal consequences, including Thomas Smith, while founder Kyle Nagy remains at large.

The case reflects broader federal efforts to prosecute financial crimes in the cryptocurrency sector, following convictions of Sam Bankman-Fried and Alex Mashinsky.

The outcome signals a clear warning: crypto executives who abuse investor trust will face serious consequences, and authorities are committed to safeguarding the stability and security of digital asset markets.