Crypto Dream Turns into Nightmare as SafeMoon CEO Gets 100 Months in Prison
Braden John Karony, former CEO of SafeMoon, was sentenced to 100 months in US prison after a jury found him guilty of multiple fraud charges.
According to court records and Justice Department statements, he has been convicted of crimes including stock fraud, wire fraud, and money laundering.
Reports say prosecutors have proven that investors were told the money was safe when it wasn’t, and that insiders were able to move the money for their own personal gain.
“Not only did Braden John Karony abuse his position as CEO, but he also betrayed the trust of his investors by stealing over $9 million in crypto from his company to fund his lavish lifestyle,” said James C. Barnacle, Jr., assistant director of the FBI.
The founder of SafeMoon was sentenced to 100 months in prison
The founder of FTX says the exchange was the solution while he was serving a 25-year sentence
– Wendy O (@CryptoWendyO) February 10, 2026
SafeMoon: Fake Keys and Hidden Transfers
Reports note that Karony and others told buyers that SafeMoon’s liquidity pools were “closed,” a claim that appeased many investors in the token. Instead, prosecutors showed how more than $9 million was diverted from those pools.
He used some of that money to buy luxury homes and cars. The FBI described the actions as deliberate. The victims included small investors and low income earners. Also lost is savings. It left trust badly shaken.
According to US Attorney Joseph Nocella, Jr. Karony “lied to investors from all walks of life – including military veterans and hard working Americans.”
The founder of SafeMoon, Braden Karony, was recently sentenced to 100 months in prison.
“This is more like theft than fraud.
I sentence you to 100 months custody of the AG. Counting… pic.twitter.com/riFdBLyNLU– Ariel Givner (@GivnerAriel) February 10, 2026
Guilt and Conviction
The trial lasted three weeks in May 2025. The jury returned guilty verdicts on all counts. Based on reports, the sentencing was handled by US District Judge Eric Komitee in the Eastern District of New York.
The Justice Department sought a hard time, and the court obliged. Another former officer, Thomas Smith, has pleaded guilty and is facing sentencing.
Other co-founders are still under consideration. Reports say the authorities will press for recovery through confiscation and restitution orders.
BTCUSD trading at $66,546 on the 24-hour chart: TradingView
Wasted Lives and Lost Money
People who support SafeMoon often do so because they believe in the project or are looking for a new way to invest. Many have found out the hard way that promises in promo posts and social feeds can hide real dangers.
Some investors are watching the balance sheet decline. Others try to follow the paper trail and are shocked when the transfers lead to private bank accounts and luxury purchases. The case revealed how quickly trust can evaporate when controls fail.
Cases of Return and Future
The court ordered forfeiture of approximately $7.5 million, but the total amount of damages is still being worked out pending a hearing. Land restitution processes will aim to return money to victims, but these processes can take time.
Law enforcement in the US has shown a strong interest in the prosecution of crypto fraud. That means more investigations and, likely, more court dates for those accused of similar tactics.
Featured image from John Karony – Mediumchart from TradingView
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