Altcoins News

Story: SafeMoon CEO Gets Eight Years for Crypto Fraud Scheme

By Steven Anderson

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Braden John Karony got hammered. The former SafeMoon CEO just received an eight-year prison sentence from U.S.

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The May 2025 jury verdict came after a brutal three-week trial where prosecutors laid out how Karony and his crew basically turned SafeMoon into their personal piggy bank.

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U.S. Attorney Joseph Nocella Jr. didn't mince words when he said Karony targeted everyone from regular folks to military veterans to bankroll his fancy lifestyle.

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IRS-CI New York Special Agent Harry T. Chavis said Karony basically raided SafeMoon's liquidity pool like it was his personal ATM.

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SafeMoon launched in March 2021 with this wild 10% transaction tax that was supposed to reward holders and boost liquidity.

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They claimed the tokens only served business functions and that liquidity pools had strict oversight. Total garbage.

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Thomas Smith's sentencing date hasn't been announced yet. Kyle Nagy? Still missing in action. Related coverage: Young Crypto Fraudster Gets 375-Year Prison.

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The whole SafeMoon saga really shows how fast things can go sideways in crypto. The company's tokenomics model looked innovative on paper, drawing in tons of retail investors who…

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During the trial, evidence showed Karony and his crew maintained total control over those liquidity pools despite telling everyone otherwise.

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The fallout keeps spreading. Tons of first-time crypto investors got burned, and many of them were people who couldn't really afford to lose that money.

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Crypto folks are watching this case closely because it shows how easy it is for bad actors to exploit the space.

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Current SafeMoon leadership hasn't said much since the verdict. CEO John Doe went radio silent, leaving investors and stakeholders wondering what happens next.

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Crypto exchanges that listed SafeMoon are getting some heat too, even though they weren't directly involved in the fraud.

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Victims are still waiting to see how much money they might recover through restitution. The court hasn't set final amounts yet, but whatever number they land on will determine…

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Karony starts his eight-year sentence while investigators keep hunting for Nagy.

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