SafeMoon Ex-CEO Jailed 8 Years, Ordered to Forfeit $7.5M

Edgen Crypto

·Feb 10 2026, 21:53

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Key Takeaways

Former SafeMoon CEO Braden John Karony has been sentenced to prison following his conviction on multiple fraud charges related to the now-bankrupt crypto project. The sentence marks a significant conclusion to the U.S. Department of Justice's case against the company's leadership for misleading investors.

Former SafeMoon CEO Braden John Karony was sentenced to 100 months in federal prison on February 10, 2026.
In addition to prison time, Karony must forfeit $7.5 million and two residences obtained through the fraudulent scheme.
The conviction stems from a conspiracy to defraud thousands of investors by manipulating the SafeMoon token price and draining millions from liquidity pools for personal enrichment.

Ex-CEO Receives 100-Month Sentence for Fraud

Braden John Karony, the former chief executive of SafeMoon, was sentenced to 100 months in prison on February 10, 2026, marking a decisive end to a high-profile crypto fraud case. The sentence was delivered in the U.S. District Court for the Eastern District of New York. In addition to the nearly eight-year prison term, Karony is ordered to forfeit $7.5 million and two residences as restitution for his role in defrauding the project's investors.

Executives Drained Millions From Liquidity Pools

Karony was convicted after a three-week trial on charges of conspiracy to commit securities fraud, wire fraud, and money laundering. Prosecutors successfully argued that Karony and his co-conspirators misled investors by promising significant returns while secretly siphoning millions of dollars from the project's liquidity pools. The stolen funds were used to finance lavish lifestyles, including the purchase of mansions and luxury sports cars. One co-conspirator, Thomas Smith, pleaded guilty in February 2025, while another, Kyle Nagy, remains wanted by authorities. The scheme ultimately led to the collapse of the Utah-based company, which filed for Chapter 7 bankruptcy.

Karony lied to investors from all walks of life — including military veterans and hard-working Americans — and defrauded thousands of victims in order to buy mansions, sports cars, and custom trucks.

— United States Attorney Nocella