TLDR
- Ex-SafeMoon CEO Braden Karony sentenced to 100 months for $9M crypto theft.
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Karony was convicted of securities fraud, wire fraud, and money laundering.
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DOJ says Karony used stolen funds for luxury vehicles and a Utah mansion.
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Thomas Smith pleaded guilty and awaits sentencing while Kyle Nagy is at large.
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Karony ordered to forfeit $7.5M; restitution for victims to be decided later.
Braden Karony, former CEO of cryptocurrency platform SafeMoon, has been sentenced to 100 months in prison. A federal court found him guilty of conspiracy to commit securities fraud, wire fraud, and money laundering. The sentencing follows his conviction in May 2025 after a lengthy trial process.
Karony was accused of stealing more than $9 million from the platform’s liquidity pool during 2021. Prosecutors said he used the stolen funds to support a lavish personal lifestyle, which included purchasing luxury vehicles and high-end real estate.
Luxury Purchases Funded by Stolen Crypto Assets
Court documents revealed that Karony used investor funds to buy a $2.2 million house in Utah. He also purchased an Audi R8 sports car, a Tesla, and two customized trucks—a Ford F-550 and a Jeep Gladiator.
The U.S. Department of Justice stated that Karony’s actions violated the trust of thousands of SafeMoon investors. FBI Assistant Director James C. Barnacle, Jr. said Karony “abused his position as CEO and betrayed investors’ trust.”
U.S. Attorney Joseph Nocella, Jr. added,
“Karony lied to investors from all walks of life—including military veterans and working Americans.”
Karony has also been ordered to forfeit around $7.5 million, although restitution amounts will be decided later. The DOJ stated that investor losses are still being assessed.
SafeMoon Executives Also Face Legal Consequences
The case has implicated several other SafeMoon executives. Thomas Smith, the former chief technology officer, pleaded guilty in February 2025 to charges of conspiracy to commit securities and wire fraud. Smith is awaiting sentencing.
Kyle Nagy, who founded SafeMoon, has not been located. Authorities stated that he remains at large, and they are continuing efforts to find him. The DOJ emphasized that all responsible individuals will be held accountable.
SafeMoon gained popularity during the 2021 crypto boom. The platform promised high returns and attracted large numbers of retail investors. Karony’s conviction adds to the growing number of crypto executives sentenced over fraud charges from that period.
Daren Li Gets 20 Years for $73M Crypto Scam
In a related but separate case, Daren Li was sentenced to 20 years in prison in the U.S. District Court for the Central District of California. Li, a dual national of China and St. Kitts and Nevis, ran a $73 million global crypto scam using fake trading platforms.
According to the DOJ, eight of Li’s co-conspirators have pleaded guilty. Li removed his ankle monitor and fled in late 2025 while awaiting trial. International law enforcement agencies are coordinating with U.S. officials to secure his return.
Li received the maximum statutory sentence and will also serve three years of supervised release. His scam operated under the “pig butchering” model, which uses social engineering to trick victims into transferring money to fraudulent platforms.
Karony joins other high-profile figures from the 2021–2022 crypto cycle who have faced legal action. Former FTX CEO Sam Bankman-Fried is serving 25 years, and ex-Celsius CEO Alex Mashinsky is serving 12 years.
